Discover how BRICS leaders emphasize the importance of using local currencies in global trade and financial transactions. Read about their commitment to enhancing cooperation and innovation within the economic bloc.
The BRICS nations (Brazil, Russia, India, China, and South Africa) have underscored the importance of fostering the utilization of local currencies in international trade and financial transactions. This emphasis on enhancing the role of local currencies was articulated in the "Johannesburg II Declaration" following the conclusion of the 15th annual BRICS summit. The declaration also assigned their finance ministers and central bank governors the task of examining local currencies, payment methods, and platforms.
During the three-day summit held in Johannesburg under the theme "BRICS and Africa: Partnership for Mutually Accelerated Growth, Sustainable Development, and Inclusive Multilateralism," the BRICS leaders reinforced their commitment to reinforcing the framework of mutually beneficial cooperation within the economic bloc.
Recognizing the myriad advantages of swift, cost-effective, transparent, secure, and comprehensive payment systems, the declaration proclaimed:
"We stress the importance of encouraging the use of local currencies in international trade and financial transactions between BRICS as well as their trading partners."
Furthermore, the leaders advocated for the strengthening of correspondent banking networks within the BRICS countries, promoting settlements in local currencies.
The declaration also outlines the responsibility bestowed upon the finance ministers and central bank governors to evaluate local currencies, payment instruments, and platforms and provide a report for the next summit. The upcoming BRICS Chairmanship in 2024 will be held by Russia, culminating in the XVI BRICS Summit to be hosted in Kazan.
The declaration's focus extends beyond currencies to acknowledge the pivotal role of the New Development Bank (also known as the BRICS Bank) in advancing infrastructure and sustainable development within member nations. This bank, which has expanded its membership to include Bangladesh, the United Arab Emirates (UAE), and Egypt—with Uruguay as a potential member—continues to play a vital role in the BRICS economic bloc's progress.
Moreover, the BRICS bloc has extended invitations to Argentina, Egypt, Ethiopia, Iran, Saudi Arabia, and the UAE to become new members. South Africa, this year's BRICS summit chair, noted that 23 countries have formally expressed their interest in joining the group. With the declaration emphasizing the evolution of the BRICS partner country model and the identification of potential partner nations, the bloc is demonstrating its commitment to bolstering its global presence and influence.
(Kevin Helms, Bitcoin News, 2023)