BRICS Eyes Local Currency Trade Amid De-dollarisation Buzz

The Cliff News | 13 September 2026

The BRICS bloc is actively exploring avenues to strengthen cross-border payments and significantly reduce transaction costs within its member nations. A key focus is the practical implementation of local currency settlements for bilateral trade, a move that has gained momentum amidst ongoing discussions on de-dollarisation.

However, official statements from the summit clarify that the creation of a common BRICS currency is not currently on the agenda. Sudhakar Dalela, Secretary (Economic Relations) in the Ministry of External Affairs, confirmed this during a media briefing following the first day of the two-day BRICS Summit in New Delhi. "There is no proposal in the BRICS for a BRICS currency, as of now," Dalela stated.

Push for Local Currency Settlements

Dalela elaborated that the discussions on settling bilateral trade in local currencies have been a continuous process within BRICS. He emphasized that this approach is viewed as a practical mechanism to drive down transaction costs in trade between member countries. "We believe local currency settlement is a practical mechanism to reduce transaction cost in bilateral trade. This has been encouraged as complementary to global payment and settlement system, improving overall global trade across nations," he said.

These remarks are particularly significant given the increasing global speculation regarding the potential introduction of a common BRICS currency. Such a currency would aim to diminish reliance on the U.S. dollar for international trade and financial transactions, a process often referred to as de-dollarisation.

Digital Payment Systems Integration

The push towards local currency trade was further echoed by Union Minister of Commerce and Industry Piyush Goyal. Addressing the BRICS Business Forum 2026, Goyal urged member countries to interlink their payment systems and actively promote trade using their respective local currencies. His call also highlighted the potential of digital trade and emerging technologies for future collaboration.

Goyal showcased India's initiatives in developing digital public infrastructure, specifically mentioning the Unified Payments Interface (UPI). He noted that UPI is already accepted in 11 countries and encouraged BRICS partners to explore similar integrations. "I would urge the BRICS member countries and partner countries to link our payment systems, trade in each other's local currencies, make digital trade global and build together for the future emerging technologies," the minister was quoted as saying.