BRICS Nations to Boost Local Currency Trade in Global Markets
The foreign ministers of the BRICS bloc have decided to boost the use of local currencies in cross-border trade. The top diplomats, who met in South Africa, also emphasized the importance of financial inclusion and welcomed the emerging new technologies supporting the move.
Foreign Ministers Embrace Financial Inclusion and Technological Advancements
The BRICS countries, comprising Brazil, Russia, India, China, and South Africa, have unveiled their plans to foster the use of local currencies in international trade. During a meeting of foreign ministers in Cape Town, the bloc emphasized the significance of financial inclusion and welcomed innovative technologies supporting this endeavour, Russian news agencies Tass and RIA Novosti reported.
The gathering of the top diplomats from the BRICS nations took place in South Africa's historic city of Cape Town on June 1–2. Following China's chairmanship, the hosting country has assumed the leadership role. In a joint statement released by the Department of International Relations and Cooperation, the ministers expressed their commitment to promoting the utilization of local currencies in global trade and financial transactions among BRICS nations and their trading partners.
"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."
Moreover, the representatives underlined the importance of financial inclusion as a means to enable individuals to benefit from economic growth and prosperity. They hailed the plethora of new technological instruments developed in BRICS countries, recognizing their potential to facilitate people's participation in the formal economy.
Expression of Interest to Join the BRICS
Several other countries, including Argentina, Iran, Indonesia, Turkey, and Egypt, have expressed interest in joining the association. Additionally, Saudi Arabia is currently engaged in membership discussions, according to recent reports.
The heads of state from the BRICS nations are scheduled to convene in Johannesburg from August 22 to 24. Russian Deputy Prime Minister Alexey Overchuk indicated that the summit's agenda is likely to include discussions on the creation of an international reserve currency based on the BRICS currencies.
Earlier this year, South Africa's ambassador to the group, Anil Sooklal, highlighted the ongoing efforts to deepen economic and financial ties among BRICS members, aiming at the eventual establishment of a common currency. However, the current focus remains on expanding the use of national currencies within the bloc.
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