BRICS leaders emphasize use of local currency, call for greater financial cooperation – ThePrint – ANIFeed

Kazan (Russia), October 23 (ANI): Leaders of BRICS countries reaffirmed their commitment to strengthening financial cooperation and expanding the use of local currencies in a bid to strengthen economic stability and promote development.

The leaders stressed the importance of strengthening cross-border financial practices and deepening economic ties between member countries. They reiterated the growing need to reform the international financial architecture to make it more inclusive and equitable.

The use of local currencies in trade and financial transactions has been highlighted as a key instrument to reduce vulnerabilities and mitigate the impact of external economic shocks on emerging and developing economies.

“We welcome the use of local currencies in financial transactions between BRICS countries and their trading partners. We encourage the strengthening of correspondent banking networks and the possibility of settlements in local currency,” the statement said.

This focus on local currencies follows the BRICS Cross-Border Payments Initiative (BCBPI), aimed at streamlining payments and minimizing trade barriers between member states, the press release said.

Additionally, the New Development Bank (NDB), a major financial institution established by BRICS, has been recognized for its crucial role in promoting infrastructure and sustainable development. The Declaration commended the NDB’s efforts to increase local currency financing and use innovative investment tools. The leaders highlighted the bank’s commitment to building capacity and knowledge exchange, which are essential to achieving the Sustainable Development Goals.

The Kazan Declaration also highlighted the challenges facing developing countries in managing the debt burden. High interest rates and tighter global financing conditions have exacerbated vulnerabilities in many countries. In response, BRICS leaders called for the coordinated implementation of the G20 Common Framework for Dealing with Debt to support sustainable development.

The BRICS countries also welcomed the creation of an Interbank Cooperation Mechanism (ICM) to explore innovative financial practices, particularly to facilitate the financing of infrastructure projects. The ICM will continue to work alongside the NDB to develop effective financial mechanisms and platforms that can increase the flow of investments to BRICS and other developing countries, the press release said.

The summit outcomes reaffirmed the role of BRICS as a central bloc in global financial governance. The leaders stressed the importance of fostering inclusive and sustainable economic growth through continued financial cooperation, innovative cross-border payment systems and the use of local currencies in trade to safeguard the bloc’s economic future. (ANI)

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