Use of local currencies to speed up trade and reduce costs in BRICS

The use of local currencies in trade relations between BRICS countries will accelerate trade and reduce international costs. This was stated by Brazilian Foreign Minister Mauro Vieira during the Bom Dia, Ministro programme.

Taking part in the programme, Mauro Vieira said that if countries are responsible with their national accounts, the use of local currencies in international trade relations can also help strengthen them. "But of course it will depend on the national accounts and the volume of trade," he emphasised.

To enable the use of national currencies in trade relations between the BRICS countries (a group comprising Brazil, Russia, India, China and South Africa), the economy ministers were asked to "explore mechanisms that could lead to settlements in national currencies in bilateral trade".

Thus, Brazil will be able to pay for its international trade transactions in reals. On the other hand, when exporting, other countries will be able to receive money in their national currencies. "This is a very important step because it speeds up trade - and above all reduces the costs of international transfers."

He recalled that an attempt to use national currencies for this type of trade had already been made by President Luiz Inacio Lula da Silva during previous presidential terms, as reported by Toda Palavra, a partner of TV BRICS.

"In his first two terms, President Lula pursued the same goal and the first agreement was signed around 2005 with Argentina. This agreement allows bilateral trade to be paid for in our national currencies. He continues this work, now promoting it within the BRICS framework," said the minister.

He reiterated that it is not about creating a new currency. "It's about settling trade, eliminating the costs of international transfers, banking costs. "This is certainly a very important initiative that will make trade faster and cheaper," he added, clarifying that "triangulation of currencies" increases costs for countries.