Quietly, BRICS Starts Assembling a New Trade Finance System - Swarajya

**BRICS Moves to Build a Parallel Trade‑Finance Network**

*New Delhi –* In a series of low‑key meetings held in Johannesburg and later in New Delhi, the five BRICS economies—Brazil, Russia, India, China and South Africa—have agreed to launch a joint initiative to develop an alternative trade‑finance infrastructure. The plan, first reported by *Swarajya*, envisions a digital platform that will facilitate cross‑border transactions in local currencies, reduce reliance on the U.S. dollar‑centric SWIFT system and provide participating banks with a pool of liquidity backed by the BRICS New Development Bank (NDB). While details remain under wraps, senior officials have confirmed that a working prototype could be operational by mid‑2025, initially covering intra‑BRICS trade in commodities such as energy, minerals and agricultural products.

*Strategic balancing act for India* India’s role in the venture has drawn particular attention. As *The Hindu* notes in its “View From India” newsletter, New Delhi sees the new finance system as a “strategic balancer” that can diversify its external financing sources without alienating its long‑standing trade ties with the United States and the European Union. At the same time, Indian diplomats have sought to temper Beijing’s influence within the framework, warning of a “double standard” after China’s recent push for tighter settlement rules that would favour the yuan, a concern echoed in *Telegraph India*. Nonetheless, Indian officials have publicly praised the collaborative spirit of the project, positioning it as a step toward a more inclusive multilateral order.

*Challenges and outlook* Experts caution that the initiative faces technical, regulatory and geopolitical hurdles. According to an analysis in *ORF Online*, achieving consensus among BRICS members on governance, risk‑share mechanisms and anti‑money‑laundering standards will be crucial. Moreover, the platform must compete with entrenched global payment rails and win the confidence of private‑sector banks that are wary of political interference. If the system can deliver faster settlement times and lower transaction costs, it could reshape trade finance for emerging markets, offering a credible alternative to the dollar‑dominant status quo. For now, the project remains “quietly” under development, but its progress will be closely monitored by policymakers in Washington, Brussels and beyond.

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