BRICS finance ministers and central bank governors have pushed for reforms in the global financial system, calling for stronger representation of emerging and developing economies in institutions such as the International Monetary Fund and the World Bank.
The discussions come ahead of the BRICS Summit in New Delhi, where financial cooperation is expected to remain a key part of the expanded group's agenda.
Editorial Insight
Key Highlights
Important points readers should notice.
Issue/Event: BRICS pushes global financial reforms and stronger payment cooperation
Location: New Delhi, India
Authority/Organisation: BRICS finance ministers and central bank governors
Action Taken: Called for reforms at global financial institutions and improved cross-border payment systems
Impact: Could strengthen financial cooperation and representation of emerging economies
BRICS finance officials have also backed efforts to improve cross-border payment systems. The objective is to make international transactions faster, cheaper and safer, while improving connectivity between different payment systems.
The push reflects a broader BRICS effort to strengthen financial cooperation among member countries and reduce some of the barriers that make international payments costly and slow.
The group has increasingly focused on issues such as local-currency settlements, payment connectivity and greater participation of emerging economies in global financial decision-making.
Editorial Analysis
Why This Matters
Reforms at the IMF and World Bank could affect how developing economies are represented in global financial decision-making. More efficient cross-border payments could also reduce transaction costs and improve trade and investment flows between BRICS economies.
The call for reform also comes at a time when developing economies are seeking a greater role in shaping international financial rules and institutions.
