Egyptian Prime Minister Mostafa Madbouly has confirmed that BRICS member states are increasingly adopting local currency settlements in bilateral financial transactions as part of a broader strategy to reduce reliance on foreign currencies and strengthen economic cooperation within the group.
In response to a question from Sada El-Balad, a partner of TV BRICS, on the sidelines of a recent press engagement, Prime Minister Madbouly stated that several BRICS countries have already begun implementing this mechanism in a bilateral format. He emphasised that this approach is especially effective when trade balances between countries are relatively even, fostering greater monetary stability.
Madbouly noted that the use of local currencies in trade settlements contributes to easing foreign exchange demand and helps maintain more balanced commercial relationships. He added that the BRICS group is moving towards wider implementation of this system, beginning with bilateral arrangements and potentially expanding it to multilateral use among all BRICS members in the future.
The shift aligns with ongoing efforts by BRICS nations to enhance financial independence, deepen economic integration, and promote a multipolar global economic order.
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