BRICS pushes for linked payment systems and greater use of local currencies in trade
NEW DELHI: Union Commerce and Industry Minister Piyush Goyal on Friday called on BRICS member and partner countries to link their payment systems and conduct more trade in local currencies.
Speaking at the inaugural session of the BRICS Business Forum 2026 in New Delhi, Goyal said BRICS cooperation would help create jobs, wealth and prosperity for nations that together represent nearly half of the world’s population and about 40 per cent of global GDP.
“I would urge the BRICS member countries and partner countries to link our payment systems, trade in each other’s local currencies, make digital trade global and build together for the future,” Goyal said. He emphasised that trade among partners should remain deep and resilient, with diversified supply chains, so that it does not become an impediment to growth or the well-being of people in member states.
The minister also urged countries to open their markets to each other’s products, including raw materials and critical minerals, and to simplify regulatory procedures for faster clearance of consignments.
External Affairs Minister S. Jaishankar, also addressing the forum, underlined the need for greater economic security through self-reliance while remaining interconnected. He called for genuine market practices, a predictable business environment, diversified commercial relationships and transparent trade systems, along with energy pathways suited to different national circumstances.
RBI’s Push for Easier Cross-Border Payments
Parallel discussions within BRICS have focused on practical mechanisms to make cross-border payments faster and cheaper. Reserve Bank of India Governor Sanjay Malhotra has noted that member countries are exploring links between their fast payment systems and central bank digital currencies (CBDCs).
He highlighted the potential to reduce costs significantly compared with traditional international remittances that can take hours or days.
Options under consideration include interoperability between national CBDCs and the linking of existing fast-payment systems such as India’s Unified Payments Interface (UPI).
The RBI had recommended that linking BRICS members’ CBDCs be placed on the agenda of the 2026 Summit to streamline trade, trade finance and tourism payments.
Finance ministers and central bank governors have been discussing the BRICS Cross-Border Payments Initiative through a dedicated Payment Task Force, with the goal of creating systems that are fast, low-cost, transparent and safe.
India already maintains bilateral local-currency settlement arrangements with countries including the UAE, Indonesia, Maldives and Mauritius, and continues efforts to internationalise the rupee through frameworks such as Special Rupee Vostro Accounts.
De-Dollarisation Rhetoric Versus Practical Diversification
While discussions on reducing reliance on the US dollar have intensified in political circles, experts and policymakers emphasise that complete de-dollarisation is considerably harder to accomplish than gradual diversification.
The dollar still plays a central role in global foreign-exchange markets, featuring in nearly 89 per cent of all FX transactions according to Bank for International Settlements data. Its proportion of global official reserves was approximately 57 per cent in the early part of 2026.
Observers draw a clear line between political statements on de-dollarisation and the more practical approach of building additional options. Connecting payment systems and increasing the use of local currencies for settlement can lessen the necessity of routing every transaction through the dollar, without the need for a shared BRICS currency or an open challenge to the current monetary framework.
Ongoing trade imbalances, varied economic structures among members, and the absence of sufficiently deep alternative capital markets continue to pose major practical challenges.
India has steadily favoured bilateral local-currency mechanisms and interoperable payment systems rather than any broad narrative aimed at replacing the dollar. Officials and experts point out that a common BRICS currency is not under active consideration at present, largely because of the significant economic differences across the expanded group of 11 countries.
Other Areas of Cooperation
At the Business Forum, Minister of State for Commerce and Industry Jitin Prasada called for greater collaboration in digital services, artificial intelligence, semiconductors and data centres, stressing the importance of green power and data sovereignty.
Russian Economic Development Minister Maxim Reshetnikov proposed the creation of a BRICS grain exchange as an independent platform for agricultural commodities and suggested joint work on Special Economic Zones.
The discussions reflect a broader shift within BRICS towards concrete, incremental steps, payment interoperability, local-currency trade and sectoral cooperation rather than ambitious monetary overhaul.
As leaders gather in New Delhi, the emphasis remains on building practical tools that can lower transaction costs, strengthen resilience and expand economic options for member countries.
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