BRICS decided to expand trade settlement using member states' currency. As some said it is a move to reduce reliance on the U.S. dollar, India, the chair, drew a line, noting it is not discussing creating a single BRICS currency.
According to the Ministry of Foreign Affairs of India, BRICS leaders adopted the New Delhi Declaration at a summit in New Delhi on the 12th (local time), which includes strengthening settlement cooperation among member states.
The declaration said it "recognizes the efforts of the BRICS Payment Task Force (BPTF), which has sought practical solutions for an efficient cross-border settlement framework."
BRICS leaders also agreed to continue discussions on linking settlement and financial information networks among member states and on promoting trade settlement and investment using local currency.
However, the declaration said it "respects each country's priorities and recognizes there is no one-size-fits-all approach." With each member's economic and financial environment differing, it signaled caution toward unifying settlement systems into a single framework.
The declaration did not explicitly mention the U.S. dollar. But analysts said it signaled a move to reduce dollar reliance by formally confirming plans to settle trade in member states' currency.
The South China Morning Post (SCMP) in Hong Kong said the joint declaration showed that "BRICS has moved toward de-dollarization."
U.S. President Donald Trump has repeatedly warned about BRICS' de-dollarization push. In Dec. 2024, when he was president-elect, he said he would impose a 100% tariff if BRICS created its own currency or challenged the dollar's dominance with another currency.
Since then, U.S. reciprocal tariff measures and rising national debt have fueled concerns about trust in the dollar. China and Russia are increasing their holdings of gold and other currency instead of the dollar to reduce reliance on the U.S. financial system.
India, however, emphasized that local currency settlement and the idea of a single BRICS currency are separate. Sudhakar Dalela, India's Vice Minister for economic affairs at the Ministry of Foreign Affairs, said at a press conference that "there is currently no proposal on a single currency within BRICS."
He added, "Talks on trade settlement using local currency have been underway for some time and are not a new topic."
Vice Minister Dalela described local currency settlement as "a practical means to reduce the transaction expense of bilateral trade," adding that "it is meant to complement, not replace, existing international payment and settlement systems, and to promote global trade."