Kazan, Russia, October 23, 2024—The leaders of BRICS nations reaffirmed their commitment to enhancing financial cooperation and expanding the use of local currencies to bolster economic stability and development. This was announced in the Kazan Declaration, titled “Strengthening Multilateralism for Just Global Development and Security,” released at the conclusion of the BRICS Summit.
The declaration underscored the importance of strengthening cross-border financial practices and deepening economic ties among member countries. Leaders highlighted the urgent need to reform the international financial architecture to ensure it is more inclusive and equitable.
A key focus was the promotion of local currencies in trade and financial transactions, viewed as essential for reducing vulnerabilities and mitigating the impacts of external economic shocks on emerging and developing economies. The declaration stated, “We welcome the use of local currencies in financial transactions between BRICS countries and their trading partners,” encouraging the strengthening of correspondent banking networks for local currency settlements.
This emphasis on local currencies aligns with the BRICS Cross-Border Payments Initiative (BCBPI), which aims to streamline payments and minimize trade barriers among member states.
The New Development Bank (NDB), established by BRICS, was acknowledged for its critical role in promoting infrastructure and sustainable development. The declaration praised the NDB’s efforts in expanding local currency financing and utilizing innovative investment tools. Leaders emphasized the bank’s commitment to capacity building and knowledge exchange essential for achieving sustainable development goals.
The Kazan Declaration also addressed the challenges faced by developing nations in managing debt burdens, particularly amid high interest rates and tighter global financing conditions. In response, BRICS leaders called for the coordinated implementation of the G20 Common Framework for Debt Treatment to support sustainable development.
Additionally, the formation of a BRICS Interbank Cooperation Mechanism (ICM) was welcomed to explore innovative financial practices, especially for infrastructure financing. The ICM will collaborate with the NDB to develop effective financial mechanisms to increase investment flow into BRICS and other developing nations.
The outcomes of the summit reaffirmed BRICS’ pivotal role in global financial governance. Leaders emphasized fostering inclusive and sustainable economic growth through continued financial cooperation, innovative cross-border payment systems, and the use of local currencies in trade to secure the bloc’s economic future.
