BRICS Tackles Tariff Barriers with Local‑Currency Settlements

Finance ministers and central bank governors of the BRICS grouping gathered in Mumbai on September 11 to discuss how increasing tariffs and non‑tariff restrictions are reshaping the global trade landscape. They collectively urged member states to deepen the use of their own currencies for trade and investment, aiming to diminish the dominance of the U.S. dollar in international settlements.

The newly formed BRICS Payment Task Force is actively developing a framework that enhances interoperability between national payment systems and messaging protocols. Its goal is to deliver a payment ecosystem that is faster, cheaper, and more transparent for businesses operating across borders.

Participants stressed that a uniform model cannot be imposed because each economy faces unique fiscal pressures. Instead, they advocated a flexible approach that respects national priorities while fostering regional cooperation.

The declaration also underscored the importance of reforming global financial institutions. The BRICS countries called for an accelerated rollout of the quota increase approved in the IMF’s 16th General Quota Review and for a meaningful rebalancing during the 17th review. They further urged the World Bank to address historic under‑representation of developing economies in its 2025 share‑holding review.