The BRICS Ministers of Foreign Affairs convened in Nizhny Novgorod, Russia, to discuss various significant topics, including the enhanced use of local currencies in trade and financial transactions among the BRICS countries.
Key Discussions:
1. Local Currencies in Trade and Financial Transactions:
• The ministers emphasized the importance of increasing the use of local currencies in trade and financial transactions between BRICS nations.
• This move aims to reduce dependency on major global currencies and foster economic cooperation within the bloc.
2. Reforming Global Financial Architecture:
• The ministers recognized the need for comprehensive reform of the global financial system.
• They recalled the Johannesburg II Declaration, specifically paragraph 45, which tasked the Finance Ministers and Central Bank Governors of the BRICS countries with considering issues related to local currencies, payment instruments, and platforms.
Objectives and Benefits:
• Economic Sovereignty: Enhancing the use of local currencies can strengthen economic sovereignty and reduce the influence of external economic pressures.
• Financial Stability: Promoting local currencies in international trade can contribute to more stable and predictable financial transactions.
• Increased Cooperation: This initiative can deepen economic cooperation and integration among BRICS countries, fostering mutual growth and development.
The meeting underscored the commitment of BRICS nations to pursue economic strategies that promote stability, independence, and collaboration in the global financial landscape.
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