BRICS Finance Ministers Discuss Cross-Border Payment Mechanisms, Local Currency Settlements

Finance ministers and central bank governors of BRICS countries have discussed the possibility of developing efficient cross-border payment mechanisms.

"We acknowledge the efforts of the BRICS Payment Task Force (BPTF) towards exploring pragmatic solutions for efficient cross-border payment mechanisms, drawing on the guidance provided by our leaders in the Kazan and Rio Declarations, on the BRICS Cross-Border Payments Initiative," a joint statement of BRICS Finance Ministers and Central Bank Governors (FMCBG) said on Friday.

The statement comes a day before the two-day BRICS Summit being held in Delhi.

The BPTF studied cross-border interoperability of payment and messaging channels and held discussions on promoting trade settlements and investments using local currencies of BRICS countries.

While pursuing these efforts, the task force has been asked to respect national priorities and recognise that there is no "one-size-fits-all" approach.

"We encourage the BPTF to continue discussions, building on the ongoing work, to facilitate practical solutions for cross-border payments among BRICS countries, which are fast, low-cost, more accessible, efficient, transparent, and safe," the statement said.

Focus on global financial reforms

With emerging markets and developing economies (EMDEs) accounting for a growing share of global output and growth, reforming global economic governance remains a key BRICS priority.

The finance ministers and central bank governors said they would continue strengthening coordination among BRICS members to make international financial institutions more representative, transparent and accountable.

The FMCBG reiterated the need for reforms in the Bretton Woods Institutions (BWI) to make them more agile, effective, credible, inclusive, unbiased and representative.

It said the governance structure of BWI should reflect changes in the global economy since their establishment.

The group also called for greater representation of EMDEs in the BWI and reiterated the need for improved management procedures, including a merit-based, inclusive and transparent selection process for leadership positions at the International Monetary Fund (IMF) and the World Bank.

The FMCBG reaffirmed the BRICS Rio de Janeiro Vision for IMF Quota and Governance Reform and stressed the need for a strong, quota-based and adequately resourced IMF at the centre of the global financial safety net to support member countries, particularly vulnerable economies.

It also said the 2025 World Bank Shareholding Review was an important step towards strengthening multilateralism and enhancing the legitimacy of the World Bank Group as a more effective development finance institution.

NDB role in development and financing

On the New Development Bank (NDB), the joint statement said, "As it embarks on its second golden decade of high-quality development, we recognise and support the growing role of the NDB as a robust and strategic agent of development and modernisation in BRICS and the Global South".

The statement encouraged the bank to mobilise resources, expand local currency financing, strengthen project preparation facilities, diversify funding sources, promote innovation and support projects aimed at inclusive and sustainable growth in member countries.

It reiterated support for the NDB’s efforts to fulfil its mandate in a fair, transparent and non-discriminatory manner and strengthen its role as a leading multilateral development institution for emerging markets and developing economies.

The FMCBG welcomed progress in advancing the BRICS Multilateral Guarantees (BMG) initiative in line with the guidance provided by BRICS leaders in 2025.

It noted the preparatory work undertaken by the NDB for the pilot phase of the initiative under its existing Policy on Guarantees to support sustainable development and resilient infrastructure projects.

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Cooperation on taxation

The finance ministers and central bank governors expressed commitment to curbing tax-related illicit financial flows and promoting fair allocation of taxing rights.

The FMCBG reaffirmed its commitment to strengthening BRICS tax cooperation through resilience, innovation, cooperation and sustainability.

It also stressed the importance of knowledge sharing, capacity building and constructive engagement at international forums, including the United Nations Framework Convention on International Tax Cooperation and its protocols, to support a fair, efficient and future-ready international tax system.