BRICS nations agree to financial settlement in local currencies

Kazan: BRICS nations on Wednesday agreed to strengthen trade and financial settlement in local currencies, study feasibility of an independent cross-border settlement and depositary infrastructure, and a BRICS reinsurance company.

The leaders also agreed to jointly develop the New Development Bank into a new type of multilateral development bank (MDB) in the 21st century and supported further expansion of the BRICS-led bank's membership.

The declaration issued after the 16th BRICS Summit here, said that BRICS members would explore the possibility for joint activities in the field of digital infrastructure to ensure the integrity, stability of the functioning and security of national segments of the Internet.

The leaders reiterated their commitment to enhancing financial cooperation within BRICS. The BRICS leaders also expressed concerns over the fast-paced digitalization process of all aspects of human life in the 21st century and underscored the key role of data for development and the need to intensify the engagement within BRICS to address this issue. The summit was attended by top leaders of BRICS nations, including Prime Minister Narendra Modi, Russian President Vladimir Putin and his Chinese counterpart Xi Jinping.

The leaders also reiterated their commitment to enhancing financial cooperation within BRICS.

"We recognise the widespread benefits of faster, low cost, more efficient, transparent, safe and inclusive cross-border payment instruments built upon the principle of minimizing trade barriers and non-discriminatory access.

"We welcome the use of local currencies in financial transactions between BRICS countries and their trading partners," it said. The BRICS leaders encouraged strengthening of correspondent banking networks within BRICS and enabling settlements in local currencies in line with BRICS Cross-Border Payments Initiative (BCBPI), which is voluntary and non-binding.