Cape Town, South Africa - The diplomatic corridors of Cape Town witnessed an influx of high-profile delegates as foreign ministers from around the world convened for a two-day BRICS meeting of foreign ministers. Among the distinguished participants were Indian External Affairs Minister, Dr. S. Jaishankar, and his Russian counterpart, Foreign Minister Sergey Lavrov. Their meeting, held on the sidelines of the event, was centered on strengthening bilateral ties and fostering collaboration within the BRICS, the Group of Twenty (G20), and the Shanghai Cooperation Organization (SCO).
Dr. Jaishankar took to social media to express his satisfaction with the meeting, stating, "Good to meet FM Sergey Lavrov of Russia in Cape Town this morning on BRICS FMM sidelines." The discussion encompassed a wide range of topics, including bilateral matters, as well as the collective efforts of the BRICS, G20, and SCO. These platforms serve as crucial arenas for fostering economic cooperation and policy coordination among member nations.
India and Russia, both prominent members of these organizations, have been making notable strides in reducing their reliance on the U.S. dollar. With the aim of promoting more autonomous financial systems, the two countries have been advocating for settlements in their national currencies. This shift not only enhances their economic independence but also establishes a more diverse and stable global financial landscape.
The Indian government has been particularly proactive in this regard. In April, during a G20 presentation, it outlined initiatives aimed at internationalizing the Indian rupee. The ultimate goal is to position the rupee as a global currency and facilitate trade settlements in INR. Notably, neighboring countries like Bangladesh have also shown a keen interest in conducting bilateral trade settlements in national currencies.
Russia, on the other hand, has been actively encouraging the use of national currencies in international trade. Foreign Minister Lavrov emphasized this during his recent statement, asserting that "the transition to payments in national currencies will become more practical" as trade turnover between nations grows. He underlined the significance of this shift not only for Africa and Latin America but also for countries in Asia, including Iran, India, and China.
Moreover, the BRICS nations are currently engaged in discussions about the possibility of establishing a common currency. This significant development is expected to be on the agenda at the upcoming BRICS leaders' summit. Furthermore, the economic bloc is exploring expansion plans, as an increasing number of countries have expressed interest in joining or have already applied for membership.
As the global financial landscape continues to evolve, cooperation and diversification in trade settlements are crucial steps toward creating a more robust and inclusive economic order. The discussions between India and Russia serve as a testament to their shared commitment to these principles. With their bilateral ties growing stronger and their collaborative efforts within the BRICS, G20, and SCO deepening, these nations are poised to shape the future of international finance and foster a more balanced global economy.
