BRICS Nations Are Turbocharging Their Break From Western-Dominated Finance, Advancing Local Currency Trade

Foreign ministers from the BRICS countries highlighted their commitment to shifting away from reliance on dominant global currencies during a meeting in Rio de Janeiro

As the BRICS nations continue to chart their course in shifting the global economic landscape, the group is rapidly advancing plans for greater use of local currencies, cross-border payment systems, and new investment platforms, aiming to empower the Global South.

At a meeting earlier this week, BRICS ministers highlighted their focus on reducing reliance on dominant global currencies, an initiative that began with last year’s BRICS Innovation Contribution to Global Economic Recovery.

Hosting the meeting under Brazil’s 2025 BRICS Chairship, officials emphasized expanding the use of local currencies in trade and financial transactions within the bloc and with third parties.

“The ministers underscored the importance of the enhanced use of local currencies in trade and financial settlements between BRICS countries and their trade partners,” the statement reads.

Noting that the agenda item was discussed extensively at the 15th BRICS Economic Ministers Meeting in March 2024, officials said ministers mandated the central bank governors and finance ministers to continue examining the use of local currencies, payment instruments and platforms, including assessing the feasibility of a BRICS cross-border payments initiative, BRICS Clear, and enhancing the bloc’s reinsurance capacity, and report back to leaders at their 2025 summit.

These initiatives are viewed as essential for deepening financial integration among BRICS members and rendering them less vulnerable to external economic shocks.

The group also reaffirmed its commitment to fostering investment both within its own ranks and across the Global South.

“They emphasized the importance of continuously expanding local currency financing and strengthening innovation in investment and financing tools and acknowledged the initiative to create new investment platform to boost investment flows into BRICS countries and the Global South mechanisms,” the statement adds.

This strategy aligns closely with broader goals of financial inclusivity, economic resilience, and a transition toward a multipolar economic system that is less concentrated and better reflects the interests of emerging markets and developing countries.

The focus on local currencies and financial platforms dovetails with ongoing discussions among BRICS members for a new global payment system that would provide an alternative to existing institutions.

Ministers are expected to present proposals for leaders’ consideration, carrying forward the agenda items set in previous ministerial meetings and new institutions designed to accelerate intra-bloc economic collaboration.