According to their foreign ministers, the BRICS bloc intends to encourage the use of local currencies in cross-border trade. During their meeting in South Africa, the top diplomats also emphasized the significance of financial inclusion and welcomed new technologies that support it.
BRICS to Stimulate Trade Transactions in Local Currencies
The BRICS group of the largest emerging economies—Brazil, Russia, India, China, and South Africa—will encourage the use of local currencies in international trade transactions. The arrangement was declared during the gathering of their unfamiliar clergymen in Cape Town, Russian news organizations announced.
From June 1 to 2, the oldest city in South Africa hosted the first meeting of the union's diplomats. The facilitating nation assumed control over the BRICS chairmanship from China recently. In a joint proclamation distributed by its unfamiliar service, the Division of Worldwide Relations and Collaboration, they stated:
"Ministers underscored the importance of encouraging the use of local currencies in international trade and financial transactions between the BRICS as well as their trading partners."
Additionally, financial inclusion, which will enable citizens to "reap the benefits of economic growth and prosperity," is emphasized by the representatives. They asserted that these "many new technological instruments for financial inclusion, developed in BRICS countries" can assist in ensuring people's participation in the formal economy and welcomed the "many new technological instruments."
Argentina, Iran, Indonesia, Turkey, and Egypt are just a few of the nations that have stated their intention to join the association. As per a new report, Saudi Arabia is holding enrollment talks too.
On August 22–24, the heads of state of the BRICS nations plan to meet in Johannesburg. The establishment of an international reserve currency based on the currencies of the BRICS nations is likely to be on the summit's agenda, according to Russian Deputy Prime Minister Alexey Overchuk.
Anil Sooklal, South Africa's ambassador to the group, spoke about efforts to strengthen economic and financial ties between the BRICS members in an interview earlier this year with the intention of establishing a common currency. He did, however, point out that the group is currently concentrating on expanding the use of their respective national currencies.
(Lubomir Tassev, Bitcoin News, 2023)