BRICS Nations Plan to Promote Use of Local Currencies in International Trade

The ministers emphasized the importance of advancing the use of local currencies in international trade and financial transactions among BRICS countries and their trading partners.

Brazil's President Luiz Inacio Lula da Silva has also expressed support for a currency that would be adopted by the group.

During their meeting, the BRICS nations reiterated the need to incorporate local currencies in global trade and financial transactions. They also reaffirmed their commitment to support a rule-based, open, and transparent international trade system, according to Ria Novosti.

In the joint statement titled 'The Cape of Good Hope', issued after the BRICS Ministers of Foreign Affairs and International Relations meeting, the ministers called for the establishment of a robust Global Financial Safety Net, centered around an adequately resourced International Monetary Fund (IMF) with a quota-based approach.

The statement further stressed the completion of the IMF governance reform, including the adoption of a new quota formula, by December 15, 2023.

The ministers expressed their support for a free, open, transparent, inclusive, equitable, non-discriminatory, and rules-based multilateral trading system with the World Trade Organization (WTO) at its core.

They emphasized the importance of special and differential treatment for developing countries, including Least Developed Countries.

In condemning unilateral protectionist measures, the ministers specifically mentioned the use of unilateral and discriminatory carbon border adjustment mechanisms, taxes, and other measures under the pretext of environmental concerns.

BRICS, consisting of Brazil, Russia, India, China, and South Africa, represents 41% of the global population, 24% of the global GDP, and 16% of global trade.

The ministers acknowledged the negative impact of unilateral approaches that violate international law on the global economy. They also highlighted the further complexity caused by unilateral economic coercive measures such as sanctions, boycotts, embargoes, and blockades.

The two-day meeting of the ministers emphasized the significance of financial inclusion to ensure that citizens benefit from economic growth and prosperity. They welcomed the technological instruments for financial inclusion developed in BRICS countries that contribute to the full participation of citizens in the formal economy.

Additionally, the ministers congratulated Dilma Rousseff, former President of Brazil, on her election as the president of the New Development Bank (NDB). They expressed confidence in her ability to strengthen the NDB and effectively fulfill its mandate.

The ministers encouraged the NDB to operate based on member-led and demand-driven principles, mobilize financing from diverse sources, promote innovation and knowledge exchange, assist member countries in achieving the Sustainable Development Goals (SDGs), and improve efficiency and effectiveness. The goal is for the NDB to become a premier multilateral development institution.

Highlighting the importance of energy security as a foundation for economic development, social stability, national security, and the welfare of nations, the ministers called for resilient global supply chains and predictable, stable energy demand. Their aim is to ensure universal access to affordable, reliable, sustainable, and modern energy sources.

The ministers stressed the significance of enhancing energy security and market stability by strengthening value chains, promoting open, transparent, and competitive markets, and safeguarding critical energy infrastructure. They strongly condemned all terrorist attacks on critical infrastructure, including critical energy facilities and other vulnerable targets.

BRICS countries proposed South Africa as the host for the next summit, scheduled for August this year.