BRICS backs local currency transfers

The 18th BRICS Summit was held in New Delhi, India, from 12 to 13 September 2026. The New Delhi Declaration 2026 reaffirmed the grouping’s support for trade and investment in local currencies and called for practical cross-border payment solutions that are fast, low-cost, accessible, efficient, transparent and safe.

BRICS and its membership

BRICS is an intergovernmental grouping formed by Brazil, Russia, India, China and South Africa. By 2026, the bloc had 11 full members, with Egypt, Ethiopia, Iran, Indonesia, Saudi Arabia and the United Arab Emirates joining the original five members.

Local currency settlement

Local currency settlement refers to trade and investment payments made in the currencies of the participating countries rather than in a third currency. Shri Sudhakar Dalela, India’s Secretary for Economic Relations, stated on 13 September 2026 that there was no proposal for a common BRICS currency and that the focus remained on bilateral arrangements and local currency settlements.

Tariffs, sanctions and trade measures

The New Delhi Declaration 2026 condemned unilateral coercive measures, including economic sanctions and secondary sanctions, and also criticised discriminatory trade practices such as carbon border taxes. The declaration called for the elimination of unlawful unilateral measures that undermine international law and the principles and purposes of the UN Charter.

Important Facts for Exams

• BRICS is a grouping of emerging economies that began with Brazil, Russia, India, China and South Africa.
• The European Union’s Carbon Border Adjustment Mechanism, or CBAM, is a trade-related climate measure linked with carbon costs on imports.
• India’s Unified Payments Interface, or UPI, is a digital payments system developed for instant retail transactions.
• Secondary sanctions are restrictions imposed on third parties for dealing with a sanctioned country or entity.

Payment systems and trade links

India’s Commerce and Industry Minister, Piyush Goyal, referred to interlinking payment systems among BRICS members during the BRICS Business Forum 2026 on 11 September 2026. Cross-border payment connectivity and local currency trade are recurring themes in BRICS economic discussions.