The presidents of the BRICS countries (Brazil, Russia, India, China and South Africa) stressed the importance of promoting the use of local currencies instead of the dollar in international trade and financial transactions, as stated at the conclusion of the 15th annual summit the group.
In addition, the BRICS countries have tasked their finance ministers and central bank governors with developing a plan to end the use of the dollar as a payment instrument in transactions between nations.
The heads of state and government of the BRICS concluded their 15th annual summit in Johannesburg on Thursday (24th). The summit’s final statement said that all BRICS leaders are committed to strengthening the use of local currencies instead of the dollar.
They stressed that they recognize the farreaching benefits of faster, cheaper, transparent, secure and inclusive payment systems and that this system can be implemented better with local currencies than with the dollar.
“We emphasize the importance of promoting the use of local currencies in international trade and financial transactions between BRICS countries and their trading partners,” the summit communiqué said.
end of the dollar era
In addition, the declaration encourages the strengthening of each country’s banking networks and settlement in local currencies.
“We may mandate our finance ministers and/or central bank governors to examine the issue of local currencies, payment instruments and platforms and report back to us by the next summit,” the statement said.
Russia will take over the BRICS presidency in 2024 and host the XVI Summit of the group in the city of Kazan.
The statement also said that the BRICS countries recognize the fundamental role of the BRICS bank in promoting the infrastructure and sustainable development of their member countries.
In addition to Brazil, Russia, India, China and South Africa, BRIC members include Bangladesh, the United Arab Emirates (UAE) and Egypt, with Uruguay being a potential member.
The BRICS economic bloc invited six countries to become new members: Argentina, Egypt, Ethiopia, Iran, Saudi Arabia and the United Arab Emirates. Earlier, South Africa, host of this year’s BRICS summit, said 23 countries had formally applied to join the group.