BRICS encourages use of local currencies in trade

The BRICS nations on Friday underlined the need for using local currencies in international trade and financial transactions besides committing themselves to supporting rule-based, open and transparent global trade, according to a joint statement by the group’s foreign ministers.

In a joint statement titled “The Cape of Good Hope,” the ministers said they expressed their support for a free, open, transparent, inclusive, equitable, non-discriminatory, and rules-based multilateral trading system, with the World Trade Organization (WTO) at its core.

The ministers also stressed the need to foster the use of local currencies in international trade and financial transactions among the BRICS countries as well as their trading partners.

BRICS (Brazil-Russia-India-China-South Africa) brings together the five largest developing countries in the world, representing 41% of the global population, 24% of world GDP and 16% of the global trade.

A number of other countries reportedly intend to join the bloc, with negotiations already underway with countries such as Argentina, Iran, as well as, according to the Chinese Foreign Ministry, Egypt, Indonesia, Türkiye and Saudi Arabia.