BRICS officials said the institutions created after World War II should mirror the global economy as it is now, not as it was then. In their words: "We reiterate the urgent need to reform the Bretton Woods Institutions to make them more agile, effective, credible, inclusive, fit for purpose, unbiased, accountable, and representative." They called for higher IMF quotas and a larger slice of IMF voting power for emerging and developing economies, and backed greater presence of those countries in IMF and World Bank leadership. This drumbeat is familiar for BRICS, which has long argued that influence should track their growing economic heft.
The group expressed "serious concerns" about rising protectionism, highlighting the use of one-sided tariff measures and various policy actions in commerce and finance that, in their view, distort trade, clash with World Trade Organization rules, and disproportionately burden developing economies. They also cited a risk list that includes geopolitical tensions, fragmentation in trade, policy uncertainty, mounting debt burdens, and persistent inflation pressures.
BRICS agreed to continue examining options to speed up and lower the cost of transfers among members, such as expanding the use of domestic currencies in commerce and capital flows. According to Bloomberg this week, India is urging other members to expand central bank digital currency use for cross-border payments, but it does not support creating a single payments system that would be perceived as challenging the dollar.
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If BRICS gains more sway at the IMF and World Bank and trims the friction in cross-border payments, funding flows and trade financing could look different over time. That can shape borrowing costs, currency moves, and how easily businesses in emerging markets get paid. Worth keeping an eye on, especially if you have international exposure or send money across borders.
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