The Rise of BRICS Currencies: Facilitating International Trade with Local Monetary Systems 

In a major event, BRICS nations stressed on Friday the need for using local currencies in international trade and financial transactions

New Delhi: Various countries across the world have taken decisions that have promoted the de-dollarization of their economies, and now, in a major event, BRICS nations stressed on Friday the need for using local currencies in international trade and financial transactions. Besides this, they also committed themselves to supporting rule-based, open, and transparent global trade.

The joint statement issued by the BRICS countries after the summit also talked about the importance of a resilient global financial safety net with a quota-based and adequately resourced International Monetary Fund (IMF).

The joint statement titled ‘The Cape of Good Hope’ also went on to say that the process of IMF governance reform under the 16th General Review of Quotas, including a new quota formula as a guide, should be implemented by December 15, 2023.

As per PTI, the statement also said that the BRICS ministers expressed their support for a free, open, transparent, inclusive, equitable, non-discriminatory, and rules-based multilateral trading system with the World Trade Organisation (WTO) at its base and with special and differential treatment (S&DT) for developing countries, including LDCs.

“They stressed their support to work towards positive and meaningful outcomes on the issues at the 13th Ministerial Conference (MC13). They committed to engaging constructively to pursue the necessary WTO reform with a view to presenting concrete deliverables to MC13. They called for the restoration of a fully and well-functioning dispute settlement system accessible to all members by 2024 and the selection of new Appellate Body members without further delay.”

As per PTI, the BRICS joint statement also condemned unilateral protectionist measures under the pretext of environmental concerns, such as unilateral and discriminatory carbon border adjustment mechanisms, taxes, and other measures.

The ministers’ meeting which went on for two days also talked about the importance of financial inclusion so that citizens can take the benefits of economic growth and prosperity associated with the usage of local currencies in the longer run.

There was also a significant discussion on ensuring energy security which is a crucial foundation for economic development, social stability, national security, and the welfare of all nations worldwide.

In the times when uncertainty shrouds the world’s business and international trade, the meeting also gave significant focus on resilient global supply chains and predictable, stable energy demand to ensure universal access to affordable, reliable, sustainable, and modern energy sources.