BRICS seeks local currency trade to cut transaction costs

BRICS countries have committed to promoting the use of local currencies in trade settlements, with the aim of reducing transaction costs and facilitating bilateral trade within the bloc.

The Secretary of Economic Relations at India’s Ministry of External Affairs, Shri Sudhakar Dalela, disclosed this in a sideline interview during the 18th BRICS Summit in New Delhi on Saturday, September 12, 2026.

BRICS is a group of major emerging economies that cooperate on economic, political, and development issues.

The ​‌⁠⁠‌‍⁠⁠‌‍⁠‌‍‍​‌​‌​name originally stood for Brazil, Russia, India, China, and South Africa.

It has since expanded. As of 2026, BRICS includes 11 full members – Brazil, Russia, India, China, South Africa, and Iran.

Others are Egypt, Ethiopia, United Arab Emirates, Saudi Arabia, and Indonesia.

Dalela said discussions on local currency settlement had been ongoing among the group members and were aimed at developing practical mechanisms to facilitate trade.

“Local currency settlement is a practical mechanism to reduce transaction costs, to bring bilateral trade,” he said.

According to him, local currency settlement is being considered as a complementary mechanism to the existing global payment settlement system.

He said BRICS countries were exploring bilateral arrangements and mechanisms within the group framework to address trade settlement challenges.

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Dalela added that the broader objective was to facilitate trade, strengthen engagement with the global business community and reduce transaction costs.

Dalela, however, clarified that there was currently no proposal for a common currency.

“There is no proposal for fixed currency as of now,” he said.

Dalela said discussions on local currency settlement and other payment mechanisms remained part of ongoing efforts to improve trade and financial cooperation among BRICS countries.