degrees brix The countries agreed on Wednesday to create a robust system of trade and financial agreements in local currencies. It was also agreed to study the feasibility of an independently functioning cross-border deposit and settlement infrastructure and a BRICS reinsurance company. Leaders of member countries also agreed to develop the New Development Bank as a new type of multilateral development bank (MDB) in the 21st century and supported the expansion of membership of the BRICS-led bank.
Use of local currencies in financial transactions
In the statement issued after the 16th BRICS Summit, the leaders reiterated their commitment to enhancing financial cooperation within the BRICS. “We recognize the widespread benefits of fast, low-cost, efficient, transparent, secure and inclusive cross-border payment products, based on the principle of reducing trade barriers and non-discriminatory access,” the statement said. “We welcome the use of.” local currencies in financial transactions between the BRICS countries and their trading partners,” he said.
Correspondent Banking Network
Prime Minister Narendra Modi came to Kazan to participate in the BRICS summit. BRICS leaders called for strengthening the “Correspondent Banking Network” within the group and allowing settlements in local currencies in line with the BRICS Cross-Border Payments Initiative (BCBPI), which is voluntary and non-binding. ‘Correspondent banks’ are financial institutions that act as intermediaries between banks from different countries and provide banking services to each other. The BRICS include Brazil, Russia, India, China and South Africa. In addition to this, five additional members have now been included: Egypt, Ethiopia, Iran, Saudi Arabia and the United Arab Emirates.
Discussion on the creation of BRICS clear
The leaders also recognized the importance of exploring the feasibility of linking the financial markets infrastructure of the BRICS countries. “We agree to discuss and study the feasibility of establishing an independent cross-border depository and settlement infrastructure, BRICS Clear,” the statement said. This will complement the existing infrastructure related to the financial market.” Member States have also agreed to develop BRICS independent reinsurance capacity, including through the BRICS (Reinsurance) Company, with voluntary participation.
Latest business news
