BRICS makes progress on its own payment system

Proposal aims to ease local currency transactions and boost economic integration among members

Negotiations on creating an exclusive payment system for Brics nations have made progress, according to the final statement from the group’s meeting of finance ministers and central bank governors. The initiative seeks to enable transactions without converting to the US dollar, encouraging the use of local currencies within the bloc.

The statement highlights advancements in identifying ways to make payment systems across member countries interoperable. This development aligns with the guidance of Brics leaders in the Kazan Declaration, which reaffirmed the bloc’s commitment to the Cross-border Payment Initiative.

Brazil presents preferred model for Brics payment system

The communiqué references the report “Brics Cross-border Payment System”, prepared by the Central Bank of Brazil. The document outlines the group’s priorities for a payment system that is fast, low-cost, accessible, efficient, transparent and secure.
While technical specifics remain undisclosed, member countries agreed to continue discussions in the second half of 2025, ahead of India’s assumption of the rotating presidency in January 2026.

Reserve fund may include new currencies and members

The bloc is reviewing the Contingent Reserve Arrangement (CRA), a mutual financial support fund established in 2014 to address liquidity crises. Proposed updates include the inclusion of additional currencies and improved risk management strategies, aiming to make the mechanism more flexible and effective.

Brics also plans to discuss, at a future meeting yet to be scheduled, the potential inclusion of new member countries in the CRA.

Source: Agência Brasil