BRICS Envoys Pitch for Use of Local Currencies in Trade
As the 17th BRICS summit is set to take place in Rio de Janeiro, Brazil, the envoys of four BRICS countries – Brazil, Russia, India, and China – have pitched for enhancing trade in local currencies, a move aimed at bolstering cooperation among the Global South. The idea is to reduce dependence on the US dollar and other major reserve currencies in international transactions.
During a panel discussion organized by the Brazilian Foreign Ministry, the envoys emphasized the benefits of using local currencies in trade, including reduced transaction costs, increased stability, and enhanced economic cooperation. They also highlighted the need for more concrete measures to promote the use of local currencies in international transactions.
Notably, India’s Secretary for BRICS, Dammu Ravi, clarified that discussions around a common currency are still at a very early stage and that the focus is currently on enhancing trade in local currencies. This clarification came amidst concerns that the idea of a BRICS common currency may be impractical.
The BRICS countries account for over 40% of the world’s population and 25% of global GDP, making them a significant player in the global economy. However, the majority of international transactions among these countries are still conducted in US dollars, which can be a constraint on their economic development.
The use of local currencies in trade can help reduce the dependence on the US dollar and other major reserve currencies. This can be achieved through bilateral agreements, swap arrangements, and other mechanisms that facilitate the use of local currencies in international transactions.
Brazil’s Ambassador to Russia, Rubens Hannun, emphasized the need for more concrete measures to promote the use of local currencies in international transactions. He suggested that the BRICS countries could establish a swap mechanism to facilitate the use of local currencies in trade.
China’s Assistant Foreign Minister, Chen Xiaodong, also emphasized the need for more concrete measures to promote the use of local currencies in international transactions. He suggested that the BRICS countries could establish a clearing mechanism to facilitate the use of local currencies in trade.
India’s Secretary for BRICS, Dammu Ravi, clarified that discussions around a common currency are still at a very early stage and that the focus is currently on enhancing trade in local currencies. He emphasized the need for more concrete measures to promote the use of local currencies in international transactions.
The use of local currencies in trade can help reduce the dependence on the US dollar and other major reserve currencies. This can be achieved through bilateral agreements, swap arrangements, and other mechanisms that facilitate the use of local currencies in international transactions.
The BRICS countries have been exploring ways to strengthen their economic cooperation, including enhancing trade in local currencies. The use of local currencies in trade can help reduce transaction costs, increase stability, and enhance economic cooperation among the BRICS countries.
The BRICS summit is expected to provide a platform for the BRICS countries to discuss ways to strengthen their economic cooperation, including enhancing trade in local currencies. The summit is also expected to provide a platform for the BRICS countries to discuss ways to promote their economic development, including through the use of local currencies in international transactions.
In conclusion, the envoys of four BRICS countries have pitched for enhancing trade in local currencies, a move aimed at bolstering cooperation among the Global South. The idea is to reduce dependence on the US dollar and other major reserve currencies in international transactions. While discussions around a common currency may be impractical, the focus is currently on enhancing trade in local currencies. The BRICS countries have been exploring ways to strengthen their economic cooperation, including enhancing trade in local currencies, and the BRICS summit is expected to provide a platform for further discussions on this issue.
