... The desirability of using national currencies in trade and financial transactions, both within the BRICS and with trading partners in third countries was emphasised. There was also support for strengthening correspondent banking relations between the BRICS countries for settlements in national currencies. The finance ministers and heads of central banks of the BRICS countries were instructed to work on this issue for the next summit; that is, they will have to report on the results within the framework of the Russian Chairmanship and the BRICS Summit in Kazan....
... influence on the international settlement and payment systems.
What are the chances of BRICS, under the current circumstances, to take a place in the global financial system... ... answer this question, we need to consider the grouping’s current positioning in global finance.
Foreign exchange markets
The international foreign exchange market (FOREX)... ... backbone of the global financial system. It is here that the virtual value of world currencies as key reserve assets is determined based on exchange quotations. As reported...
... indicating a gap of between Russian traders’ settlement currency choice and BRICS de-dollarization priorities.
To explain this phenomenon in greater detail, Karataev et al. outlined two key fundamental market barriers preventing the use of national currencies for BRICS trade finance specifically which need to be overcome as a supplement intra-BRICS currency swaps:
1. Currency Volatility:
Exchange rate fluctuations create uncertainty in optimizing settlement pricing and profitability at time of contract fulfilment from both ...
... among these six economies is long overdue. The Sr. Management of NDB can easily expand the remit of the bank by entering trade finance and project finance between these six countries alone. The bank could ask its shareholders to deploy and commit some of ... ...
The merits for accelerating and expanding the scope of NDB are not only inherent in the form of more elasticity for national currencies but also bringing Asia Pacific (China), Eurasia (Europe), India (Sub-Continent), Middle East or West Asia (Iran) Africa ...