Decade-old Local Currency Push by BRICS Is Still A Pipe Dream

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RegExp("[?&]notifications=1(&|#|$)");"desktop"===y&&i&&b.test(window.location.search)&&(i.checked=!0)};be("ybar-mod-notification",(function(e){var t={isUH3:"crunch"===e.getConfig().ytheme,notifContainer:document.getElementById("notification-container"),notifBadge:document.getElementById("notif-badge"),notifMenu:document.getElementById("ybarNotificationMenu"),notifMenuOpener:document.querySelector("#ybarNotificationMenu + label"),notifDropdown:document.getElementById("notifDropdownContainer"),tooltipContainer:document.querySelector(".".concat(Vn)),notifLabel:document.querySelector(".".concat($n))};t.notifDropdown&&ro(e,t)}))}()}};]]>Martha Beck and Mirette MagdySun, Jul 6, 2025, 11:01 PM 5 min read(Bloomberg) -- BRICS countries once again failed to make significant strides in the cross-border payments system for trade and investment they’ve been discussing for a decade.Most Read from BloombergForeign Buyers Swoop on Cape Town Homes, Pricing Out LocalsTrump’s Gilded Design Style May Be Gaudy. But Don’t Call it ‘Rococo.’Massachusetts to Follow NYC in Making Landlords Pay Broker FeesNYC Commutes Resume After Midtown Bus Terminal Crash ChaosWhat Gothenburg Got Out of Congestion PricingIn a statement released as they kicked off their meeting in Brazil Sunday, leaders committed to additional talks on the potential for greater trade integration of the 10-nation bloc.“We task our ministers of finance and central bank governors, as appropriate, to continue the discussion on the BRICS Cross-Border Payments Initiative,” the statement reads. A survey prepared by the Brazilian central bank will be presented at the two-day Rio de Janeiro summit.Despite the group’s aspirations, progress has been slow — and the tide of global trade is shifting so quickly that it may be impossible to catch up.It’s a missed opportunity for BRICS as the dollar comes under continued pressure from President Donald Trump’s erratic policies. The greenback had the worst start to a year since 1973 as Trump’s trade war and attacks on the Federal Reserve’s hesitancy to lower interest rates roiled markets, calling into question the longstanding outperformance of US assets and sending investors fleeing in search of alternatives. It’s created a boon for emerging markets that traders expect to extend further.While all members are supportive of the idea of cross-border payments, first cited in the statement of the bloc’s 2015 summit, the technical aspects of integration are complicated. Central bank systems in some countries are not yet ready, three people familiar with the discussions said. It will take time to adapt those, they said, adding that it’s unlikely to happen anytime soon.RoadblocksDiscussions involve payment mechanisms, types of currencies used, how to implement infrastructure and how to share costs. There are security concerns about the integrated systems, two people said, adding that the BRICS bloc’s recent expansion has also caused delays.The fact that several of the bloc’s currencies are non convertible, and existing sanctions on member states Iran and Russia further complicate discussions, one person said. Some countries may argue that the cost involved in setting up and maintaining a unified system would not be justified given what they already have in terms of bilateral trade, another added. 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