BRICS countries have committed to promoting the use of local currencies in trade settlements, with the aim of reducing transaction costs and facilitating bilateral trade within the bloc.
Shri Sudhakar Dalela, Secretary of Economic Relations at India’s Ministry of External Affairs, disclosed this in a sideline interview during the 18th BRICS Summit in New Delhi on Saturday.
BRICS is a group of major emerging economies that cooperate on economic, political and development issues.
The name originally stood for Brazil, Russia, India, China and South Africa.
It has since expanded. As of 2026, BRICS includes 11 full members: Brazil, Russia, India, China, South Africa, Iran, Egypt, Ethiopia, United Arab Emirates, Saudi Arabia and Indonesia.
Mr Dalela said discussions on local currency settlement had been ongoing among BRICS members and were aimed at developing practical mechanisms to facilitate trade.
“Local currency settlement is a practical mechanism to reduce transaction costs, to bring bilateral trade,” he said.
According to him, local currency settlement is being considered as a complementary mechanism to the existing global payment settlement system.
He said BRICS countries were exploring bilateral arrangements and mechanisms within the BRICS framework to address trade settlement challenges.
Mr Dalela also said that the broader objective was to facilitate trade, strengthen engagement with the global business community and reduce transaction costs.
He, however, clarified that there was currently no proposal for a common BRICS currency.
“There is no proposal for fixed currency as of now,” he said.
Mr Dalela said discussions on local currency settlement and other payment mechanisms remained part of ongoing efforts to improve trade and financial cooperation among BRICS countries.