While the idea of a BRICS common currency has been ruled out by several member states, the organisation is now focusing on developing a common payment system for member countries. Apart from the Existing national payment systems like China’s Cross-Border Interbank Payment System (CIPS), and India’s Unified Payments Interface (UPI), the New Development Bank is likely to play an important role in promoting intra-BRICS cooperation
BRICS and De-dollarization
US President Donald Trump has repeatedly warned BRICS members against pursuing de-dollarization, despite several BRICS members, on multiple occasions, reiterating that the organization does not seek to undermine the U.S. dollar in any way. Trump has warned of imposing sanctions on BRICS member states on multiple occasions.
While speaking at the Valdai Discussion Club in Sochi (Russia), earlier this month, Russian President Vladimir Putin said: “The entire BRICS policy aims at ourselves, at members of this organization. By the way, we do not hold any anti-dollar campaign or anti-dollar policy. Not at all!”
India, which will be holding the presidency of BRICS in 2026, has been the most unequivocal in its opposition to a BRICS common currency, while supporting trade in local currencies.
Expansion of BRICS and the BRICS Bank
At the same time, there is no doubt that in an increasingly uncertain global order, the importance of BRICS is growing. Countries that were earlier cautious vis-à-vis the China-dominated organisation have begun to show greater interest in BRICS, to diversify their economic relationships.
Egypt, Ethiopia, Iran, Indonesia, Saudi Arabia, and the United Arab Emirates are the new members of BRICS. BRICS also has 10 partner countries – Belarus, Bolivia, Cuba, Kazakhstan, Malaysia, Thailand, Uganda, Uzbekistan, and Nigeria.
Rise in Intra-BRICS Trade
BRICS now accounts for well over 50% of the global population and 42.5% of global GDP in purchasing power parity (PPP) terms. According to Ernst & Young, the merchandise trade share in global trade among BRICS+ countries went up to 27.3 % in 2024 from 12.9 % in 2000, considering the PPP value. It is now almost equal to the total merchandise trade of the G7, which is witnessing a decline. The GDP share of BRICS+ also increased during the same period by 18.5 percentage points, reaching 42.5 percent. The figure is higher than the G7’s combined GDP share of 28.9 %. The purchasing power parity measure favours BRICS compared to the market exchange rate while calculating GDP or merchandise trade. Intra-BRICS trade is expected to receive a further boost with the expansion of the organisation.
BRICS Common Payment System
While the idea of a BRICS common currency has been ruled out by several member states, the organisation is now focusing on developing a common payment system for member countries. The objective is to reduce dependence on the US Dollar in cross-border transactions. Existing national payment systems like Russia’s System for Transfer of Financial Messages (SPFS), China’s Cross-Border Interbank Payment System (CIPS) and UnionPay network, India’s Unified Payments Interface (UPI), and Brazil’s Pix system are expected to play a key role in integrating financial transactions across BRICS nations. However, it is important to note that implementing such an integrated payment mechanism will be a gradual and complex process, requiring significant coordination and technological alignment among member states.
The New Development Bank
Another important institution that will play an important role in promoting intra-BRICS cooperation is the New Development Bank (NDB). The bank was set up in 2015 by its founding members with a corpus of 100 billion USD. The New Development Bank (NDB), originally known as the BRICS Bank, was established to mobilize resources for infrastructure and sustainable development projects in developing countries. Bangladesh, the UAE, Egypt, Algeria are new members of the NDB, and Uruguay is a prospective member of the NDB.
It is important to note that not all BRICS members are stakeholders at NDB, and not all NDB members are part of BRICS. While Iran and Ethiopia are members of BRICS, they have not joined the NDB. Indonesia, another BRICS member, which was not part of NDB initially, has recently announced that it will be joining NDB. Indonesian President Prabowo Subianto had made this announcement during a meeting with NDB President and former Brazilian President Dilma Rousseff earlier this year. Similarly, Bangladesh and Algeria are not members of BRICS, but they have joined NDB.
Also Read: BRICS+ in Transition: Palestine’s Membership Push, India-Russia Ties, and U.S. Criticism
All members of the United Nations are eligible to apply for NDB, subject to the approval of the Bank’s Governors. NDB’s rules clearly state that the collective share of the founding BRICS nations can never be less than 55% of the total voting power. This provision aims to ensure that founding members retain control over the bank’s decision-making. Both BRICS and NDB are equally important in the global trade and finance in the Trump era.
NDB prioritises infrastructure and sustainable development projects that can improve economic growth and raise the living standards in member nations. Clean Energy and Energy Efficiency, Transport Infrastructure, Water and Sanitation, Environmental Protection, Social Infrastructure, and Digital Infrastructure are key focus areas of the NDB. The NDB’s importance is rising as a multilateral financial institution in the developing world. As of July 2025, the Board of Directors of the NDB had approved 12 projects to the tune of $37 billion.
PM Modi, during his address at the BRICS Summit 2025 in Rio De Janeiro, while commenting on the importance of the NDB, said: “In the form of BRICS New Development Bank (NDB), we have offered a strong and credible alternative to support the development aspirations of countries in the Global South.”
Conclusion
While it is true that there are differences within BRICS and the expansion of BRICS comes with challenges of its own, in an increasingly uncertain economic landscape, there is space for countries to find common ground on issues like technology, climate change, and infrastructure development. The NDB also has an important role to play in the economic development of countries in the Global South.
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