No Proposal For BRICS Currency For Now; Local-Currency Settlements Remain Focus

India clarifies that BRICS is not pursuing a common currency, as members focus on local-currency trade and improving cross-border payment mechanisms

PGurus Newsdesk

September 12, 2026

The approach would allow countries to retain their existing monetary systems while making international settlements between BRICS members more efficient

Bloc focuses on local-currency settlements and stronger cross-border payment systems

BRICS countries are not currently pursuing the creation of a common currency, with the grouping instead focusing on strengthening trade settlements in local currencies and improving cross-border payment mechanisms.

The clarification comes as India hosts the 18th BRICS Summit in New Delhi, where financial cooperation and reducing friction in cross-border transactions are among the key areas under discussion.

The BRICS declaration places emphasis on encouraging the use of members’ national currencies for trade and investment while developing faster, cheaper and more efficient cross-border payment arrangements. The grouping’s Payment Task Force is continuing work on improving interoperability between national payment and messaging systems.

Local currencies take centre stage

Rather than introducing a new currency for the expanded grouping, BRICS is looking at practical mechanisms that can enable member countries to conduct a greater share of bilateral trade using their own currencies.

The approach would allow countries to retain their existing monetary systems while making international settlements between BRICS members more efficient. The New Development Bank is also expected to play a role in expanding local-currency financing and mobilising resources for development projects.

India has consistently maintained that it is not pursuing a policy aimed at weakening the US dollar. External Affairs Minister S Jaishankar had earlier stated that there was no proposal for a BRICS currency and that India was not in favour of de-dollarisation.

Focus on payment connectivity

The current BRICS approach represents a shift towards strengthening financial infrastructure rather than creating a single alternative currency.

The grouping is working towards payment systems that are faster, safer, more accessible and less costly for businesses and financial institutions. Greater interoperability between national payment networks could make it easier for member countries to settle trade directly in their respective currencies.

India’s position also reflects its broader emphasis on strategic autonomy while maintaining strong economic ties with major global partners. The country has previously stressed that discussions within BRICS on financial transactions should not be interpreted as an attempt to undermine the dollar.

A pragmatic approach to de-dollarisation

The absence of a common BRICS currency does not mean the grouping has abandoned efforts to increase the use of national currencies. Instead, the current strategy is centred on gradually reducing transaction costs and dependence on third-country currencies in intra-BRICS trade.

With BRICS now comprising 11 major emerging and developing economies, the bloc represents a significant share of the global population, economy and international trade. India is seeking to use its BRICS chairmanship to promote practical cooperation while avoiding initiatives that could create unnecessary divisions with major economic partners.

For now, therefore, BRICS is choosing payment connectivity and local-currency settlements over a single common currency—a more incremental approach to reshaping financial cooperation among member countries.

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