BRICS advances in the use of local currencies in commercial and financial operations

BRICS, under the rotary presidency of Brazil since January 1, has announced that it will advance in the use of local currencies for financial transactions in the field of trade and investments between the member countries. The goal is to reduce the costs of commercial and financial operations, favoring emerging economies.

The confirmation was given by Mauricio Lyrio, Secretary of Economic and Financial Affairs of the Ministry of Foreign Affairs (MRE), during a press conference in Brasilia last Friday, February 21.

Initiatives in progress and priorities for 2025

Lyrio, who also acts as Brazil’s chief negotiator at BRICS, stressed that the use of local currencies is already being adopted among members since 2015 and that this process will continue during the Brazilian presidency. According to the secretary, bilateral trade between the bloc countries already makes regular use of these currencies, which should expand throughout this year.

The payment system in local currencies is among BRICS priority issues for this year, and will be debated at meetings scheduled for Tuesday, 25, and Wednesday, February 26, with the presence of representatives of the 11 nations of the block. In addition to the five founding countries – Brazil, Russia, India, China and South Africa – the BRICS received, in January 2024, the adhesion of Egypt, United Arab Emirates, Saudi Arabia, Ethiopia and Iran as full members.

Common currency outside the immediate agenda

Although the use of local currencies is an important step, Lyrio clarified that BRICS will not discuss, for now, the creation of a common currency for the block. The diplomat explained that the issue is considered very complex, given the economic diversity of members, and that the focus is on other ways to reduce operating costs.

The idea of ​​a common currency, therefore, is not being addressed in the short term, although Lyrio has recognized that in the future, Brics’s heads of state could discuss this possibility if there is interest.

Lyrio also addressed recent statements by international authorities about the BRICS posture regarding the dollar. He stated that the decision not to discuss a common currency is not related to the threats of US President Donald Trump, who recently signaled the possibility of high tariffs on imports from member countries if the bloc seeks alternatives to the dollar in international negotiations.

Multilateralism and Reform of Global Governance

Another important point raised by Lyrio was the BRICS vocation to reinforce multilateralism. The bloc aims to reform global governance, making it more democratic, inclusive and representative, with greater participation of emerging economies. Promoting a more balanced governance system is considered a priority for BRICS, which seeks to broaden its influence on global decisions.

Priorities of the Brazilian presidency at BRICS

The meetings that will take place among the BRICS representatives will also serve to align the other priorities of Brazil at the head of the group. Among the topics discussed will be health cooperation, the financing of actions against climate change, trade, investments and finances of the BRICS, the governance of artificial intelligence and the institutional development of the bloc.

These questions will be presented at the Brics State Heads Summit, scheduled for July 6 and 7, 2025, in Rio de Janeiro. The event will be attended by leaders from BRICS member countries and is an opportunity to discuss future directions of the bloc.

Opening of meetings and possibility of speech by President Lula

Tuesday’s meeting will be opened by Foreign Minister Mauro Vieira at the Itamaraty Palace in Brasilia. A special session on the second day of meetings is also planned, with the possibility of a speech by President Luiz Inacio Lula da Silva to the participants.

The February meeting is a fundamental step in preparing the discussions and decisions that will be presented at the BRICS summit, where the group’s strategies and goals for the future will be more detail defined.

The emphasis on the use of local currencies and the reduction of operating costs reflects BRICS search for practical and efficient solutions to promote economic development among emerging nations.