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BRICS currency not on agenda yet, MEA says as local trade talks continue

MEA Secretary Sudhakar Dalela said discussions on local currency settlements have been underway to reduce transaction costs in bilateral trade and complement the global payment system.

New Delhi: There is no proposal for a BRICS currency “as of now”, while discussions on facilitating trade in local currencies have been underway for some time, the Ministry of External Affairs (MEA) said on Saturday.

Addressing a press briefing, MEA Secretary (Economic Relations) Sudhakar Dalela said, “There is no proposal in the BRICS for a BRICS currency as of now.”

“Discussions on trade in local currencies have been underway for some time,” he said.

Dalela said local currency settlement was a practical mechanism to reduce transaction costs in bilateral trade and was being encouraged as a complement to the global payment and settlement system.

“We believe local currency settlement is a practical mechanism to reduce transaction costs in bilateral trade. This has been encouraged as complementary to the global payment and settlement system, improving overall global trade across nations,” he said.

Dalela said the ‘BRICS MSME’ cooperation portal, cooperation on global value chains and logistics frameworks were among the key highlights of the BRICS Summit.

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He also listed BRICS cooperation on digital public infrastructure (DPI), a science and research repository, and collaboration on startups among the major outcomes.

Dalela said it had been a year of robust participation and engagement, with more than 350 meetings held during India’s BRICS chairmanship. He described the effort as a “whole-of-nation effort”, with BRICS-related engagement taking place in more than 30 cities across the country.

He further said the BRICS Summit resulted in 150 practical outcomes across four pillars.

“Strengthening food and health security, and BRICS cooperation on mental health were some of the important highlights,” he said.

The BRICS group of emerging economies on Saturday unanimously adopted the New Delhi Declaration, expressing serious concern over the rise of unilateral tariffs and non-tariff measures that distort trade and are inconsistent with World Trade Organisation (WTO) rules.

The BRICS nations reaffirmed their “unwavering support for reform of the World Trade Organisation (WTO)” and for strengthening a non-discriminatory, open, equitable, transparent, fair, inclusive, predictable and rules-based multilateral trading system, with the WTO at its core.

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Echoing the aspirations of the Global South for full integration into the multilateral trading system, the declaration strongly supported Ethiopia and Iran’s bids to join the WTO.

It also acknowledged China for expanding its zero-tariff treatment to cover 53 African countries with which it has diplomatic ties.

Union Commerce and Industry Minister Piyush Goyal on Friday called on BRICS member and partner countries to deepen economic cooperation by opening markets, simplifying regulatory procedures, linking payment systems and promoting trade in local currencies.


With IANS inputs

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