BRICS explores faster cross-border payments, wider local currency use

New Delhi: BRICS Finance Ministers and Central Bank Governors have called for practical solutions to make cross-border payments faster, cheaper and more accessible, while exploring greater use of member countries’ currencies for trade settlements and investments.

In a joint statement issued on Friday, a day before the two-day BRICS summit in Delhi, they acknowledged the BRICS Payment Task Force’s work on payment mechanisms and interoperability between payment and messaging channels.

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The discussions form part of the BRICS Cross-Border Payments Initiative, guided by the grouping’s Kazan and Rio declarations.

The statement encouraged the task force to continue developing solutions that are efficient, transparent and safe. It stressed that the work must respect national priorities, recognising that there is no “one-size-fits-all” approach.

Push for greater voice at IMF and World Bank

The ministers and governors reiterated their demand for reforms to global financial governance, arguing that emerging markets and developing economies should have representation commensurate with their growing contribution to global output and growth.

They called for changes to the governance of the Bretton Woods institutions — the International Monetary Fund and World Bank — to reflect shifts in the world economy since their establishment.

The statement also sought merit-based, inclusive and transparent leadership selection processes that improve regional diversity and developing-country representation.

Reaffirming the BRICS Rio de Janeiro Vision for IMF Quota and Governance Reform, the grouping backed a strong, adequately resourced and quota-based IMF at the centre of the global financial safety net, particularly to support vulnerable countries.

It also described the 2025 World Bank Shareholding Review as an important instrument for strengthening the institution’s legitimacy and effectiveness.

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NDB urged to expand local currency financing

The statement supported a larger development role for the New Development Bank (NDB) across BRICS and the Global South.

It urged the bank to mobilise resources, expand local currency financing, diversify funding sources and strengthen project preparation. Financing should support projects that deliver inclusive and sustainable growth in member countries, it said.

The ministers and governors also welcomed progress on the BRICS Multilateral Guarantees initiative, including the NDB’s preparatory work for a pilot under its existing guarantees policy. The initiative is intended to support sustainable development and resilient infrastructure projects.

Commitment to tax cooperation

BRICS members reaffirmed their commitment to curbing tax-related illicit financial flows and promoting a fair allocation of taxing rights.

They also backed closer cooperation on tax administration through knowledge sharing, capacity building and engagement in international forums, including work on the United Nations Framework Convention on International Tax Cooperation and its protocols.

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