BRICS Makes a Pitch for Local Currency Use in International Trade

In addition to pledging their support for rule-based, open, and transparent global commerce, the BRICS countries stressed the importance of utilising local currencies in international trade and financial activities on Friday.

The BRICS Ministers of Foreign Affairs and International Relations called for a strong global financial safety net with the International Monetary Fund (IMF) at its core and quota-based funding in a joint statement released at the conclusion of their meeting.

It also said that the 16th General Review of Quotas’ IMF governance reform process, which includes a new quota formula as a reference, should be finished by December 15, 2023.

A free, open, transparent, inclusive, equitable, non-discriminatory, and rules-based multilateral trading system, with the World Trade Organisation (WTO) at its core and special and differential treatment (S&DT) for developing countries, including Least Developed Countries, was supported by ministers, according to a joint statement titled “The Cape of Good Hope.”

They emphasised their commitment to achieving fruitful and significant resolutions to the concerns at the 13th Ministerial Conference (MC13). They agreed to work together to accomplish the required WTO reform with the goal of delivering tangible results to the MC13. They demanded the immediate appointment of new Appellate Body Members and the reinstatement of a fully operational dispute resolution process available to all members by 2024, the statement stated.

Under the guise of environmental concerns, they denounced policies like tariffs and other unjustifiable carbon border adjustment methods that are unilateral and protectionist.

Five of the greatest emerging nations in the world are represented by the BRICS (Brazil, Russia, India, China, and South Africa), accounting for 16% of global commerce and 24% of the world’s GDP.

The ministers emphasised that unilateral economic coercive measures, including as sanctions, boycotts, embargoes, and blockades, further exacerbate the issue by having an adverse effect on the global economy and violating international law.

In order for citizens to benefit from economic growth and prosperity, the two-day ministerial meeting emphasised the significance of financial inclusion. It also welcomed the numerous new technological tools for financial inclusion developed in BRICS countries, which can help to ensure citizens’ full participation in the formal economy.

It also expressed its confidence that it will enhance the New Development Bank (NDB) and help it more successfully carry out its purpose by congratulating Dilma Rousseff, the former president of Brazil, on her election as NDB president.

They urged the NDB to adhere to the member-led and demand-driven principle, mobilise funding from a variety of sources, foster innovation and knowledge exchange, aid member countries in achieving the SDGs, and further improve efficiency and effectiveness to fulfil its mandate and strive to be a leading multilateral development institution, it said.

The ministers highlighted that preserving energy security is an important cornerstone for global wellbeing, social stability, economic growth, and national security.

To guarantee that everyone has access to reasonably priced, trustworthy, sustainable, and contemporary energy sources, they advocated for robust global supply networks and predictable, steady energy demand.

They also emphasised the need of developing value chains, fostering open, transparent, and competitive markets, and guaranteeing the preservation of vital energy infrastructure in order to improve energy security and market stability. They vehemently denounced any terrorist assaults on vulnerable people and key infrastructure, particularly critical energy plants, according to the statement.

The BRICS nations suggested holding the next meeting in South Africa in August of this year.

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