- विज्ञापन -
At the 16th BRICS Summit on Wednesday, the member nations agreed to enhance trade and financial settlements using local currencies. They discussed the potential for an independent cross-border settlement system and a BRICS reinsurance company. The leaders expressed their commitment to transforming the New Development Bank into a modern multilateral development bank (MDB) and supported expanding its membership.
In the summit’s declaration, they emphasized the advantages of efficient, low-cost, and transparent cross-border payment methods aimed at reducing trade barriers and ensuring equal access. The use of local currencies in transactions among BRICS countries and their trading partners was also welcomed.
Prime Minister Narendra Modi attended the summit, where leaders advocated for strengthening correspondent banking networks within BRICS to facilitate local currency settlements through the BRICS Cross-Border Payments Initiative (BCBPI), which is voluntary and non-binding.
Originally composed of Brazil, Russia, India, China, and South Africa, BRICS has expanded to include Egypt, Ethiopia, Iran, Saudi Arabia, and the UAE. The leaders acknowledged the significance of connecting the financial markets of BRICS nations and agreed to explore the feasibility of creating an independent cross-border settlement and depositary structure known as BRICS Clear, along with the BRICS (Re) Insurance Company, with voluntary participation.
In his address, Modi reiterated the importance of dialogue and diplomacy for conflict resolution, particularly urging peaceful negotiations to address the Russia-Ukraine war.
