BRICS member nations are intensifying efforts to create practical solutions for cross-border payments, including a greater emphasis on using local currencies for trade settlements and investments. This initiative was a key focus of the Joint Statement issued after the meeting of BRICS Finance Ministers and Central Bank Governors in Mumbai on September 10.
Push for Efficient Cross-Border Payments
During the Mumbai meeting, the grouping acknowledged the ongoing work of the BRICS Payment Task Force, which is dedicated to developing efficient cross-border payment mechanisms. The task force has been studying the interoperability of payment and messaging channels across borders, alongside exploring methods to boost trade settlements and investments utilizing the local currencies of BRICS countries.
While committed to these advancements, BRICS members also recognized that there is “no one-size-fits-all approach,” emphasizing the importance of respecting individual national priorities. The Payment Task Force has been urged to continue its discussions and build upon existing work to facilitate practical solutions for payments among BRICS nations. These solutions are envisioned to make cross-border transactions “fast, low-cost, more accessible, efficient, transparent, and safe.”
Broader Financial Track Discussions
The discussions are part of the broader BRICS Cross-Border Payments Initiative, guided by directives from BRICS leaders in the Kazan and Rio Declarations. Beyond payments, the Finance Track has also engaged in discussions concerning settlement and depositary infrastructure.
A technical workshop was held to examine the various legal, institutional, regulatory, and technical aspects of settlement and depositary systems across BRICS members. This workshop aimed to deepen understanding across jurisdictions, providing a foundation for ongoing voluntary knowledge exchange, shared experiences, and technical dialogue among interested stakeholders.
Strengthening the New Development Bank
Separately, BRICS has reaffirmed its support for an expanded role for the New Development Bank (NDB) in financing development within the grouping and across the Global South. Members encouraged the NDB to:
- Mobilize additional resources.
- Expand financing in local currencies.
- Strengthen project-preparation facilities.
- Diversify its funding sources.
- Support high-impact projects that contribute to inclusive and sustainable growth.
The joint statement also highlighted progress on the BRICS Multilateral Guarantees initiative, which is being developed in collaboration with the NDB. This initiative holds the potential to attract private capital, enhance creditworthiness, and reduce financing costs for crucial development projects in BRICS countries and the wider Global South.