Mumbai, September 11 (Daily Kiran) : BRICS finance ministers and central bank governors have expressed concern over the rising tariffs and non-tariff barriers impacting global trade. In a joint statement following their meeting in Mumbai, they emphasized the need to promote trade and investment in local currencies among member nations.
The statement revealed that the BRICS Payment Task Force is working on enhancing interoperability between payment and messaging systems of various member countries. This initiative aims to make transactions more efficient, cost-effective, and accessible. The group believes that such a payment system could encourage trade and investment while reducing reliance on the U.S. dollar.
The ministers also discussed strategies to increase the use of local currencies in trade and investment settlements. They acknowledged the differing economic and financial conditions of each member country, indicating that a one-size-fits-all model may not be feasible. Each nation will make decisions based on its national priorities.
The BRICS finance ministers and central bank heads encouraged the task force to continue discussions on cross-border payment systems. They believe that a more effective payment mechanism could enhance economic cooperation among member states.
This issue has gained prominence ahead of the BRICS leaders’ summit scheduled for September 12-13 in New Delhi. India is also working to improve interoperability among central bank digital currencies (CBDCs), although technical and policy challenges remain.
In their joint statement, BRICS nations highlighted the ongoing challenges in the global economic landscape, including geopolitical tensions, trade fragmentation, protectionism, policy uncertainty, inflationary pressures, fiscal risks, and rising global debt.
They specifically criticized unilateral tariffs and non-tariff measures, stating that such policies distort global trade and disproportionately burden developing and emerging economies. The BRICS nations reaffirmed their support for a rules-based multilateral trading system, with the World Trade Organization (WTO) as its central pillar.
The group also stressed the need for reforms in global financial institutions. They called for greater representation of developing and emerging economies in entities like the International Monetary Fund (IMF) and the World Bank.
Regarding the IMF, the group demanded the swift implementation of the agreed quota increase under the 16th general quota review, as well as meaningful quota rebalancing during the 17th review. For the World Bank, they noted that the 2025 shareholding review presents a crucial opportunity to address the historically low representation of developing countries and strengthen the institution’s legitimacy.
The BRICS nations also supported enhancing the role of the New Development Bank (NDB), emphasizing the need for financing in local currencies, project preparation facilities, diverse financial sources, and support for development projects in BRICS and Global South countries.
Additionally, the joint statement referenced India’s proposal to establish a BRICS Risk Lab in the Gujarat International Finance Tec-City (GIFT City). This proposal is linked to ongoing discussions about the BRICS Insurance Resilience Center, aimed at creating a voluntary platform for sharing risk assessment models, best practices, and expert capabilities.
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