BRICS Finance Chiefs Demand IMF Reform, Push Local-Currency Payments Amid Tariff Threat

BRICS finance ministers and central bank governors meeting in Mumbai on Thursday issued a joint statement Friday demanding a fundamental overhaul of Bretton Woods institutions and accelerating efforts to bypass the dollar-dominated payments system, as the expanded bloc confronted what it described as an escalating wave of unilateral trade measures.

The statement, released after a day of talks under India’s 2026 chairship, called for “meaningful quota realignment” under the IMF’s 17th General Review of Quotas, insisting that the new formula must increase the quota and voting shares of emerging markets and developing economies (EMDEs) without harming the poorest members. “Quota realignment should reflect countries’ relative positions in the global economy,” the finance chiefs said. “Any voluntary financial contributions should not influence quota allocation, governance representation and voting power.”

The grouping also demanded a merit-based, transparent process for selecting the leadership of the IMF and World Bank, with greater regional diversity and representation from developing economies.

**Sharp criticism of tariffs**

The BRICS members leveled unusually direct criticism at unilateral tariff policy, saying they “continue to have serious concerns with the unilateral imposition of trade and finance-related actions, including the raising of tariffs and non-tariff measures, which distort trade and are inconsistent with World Trade Organisation rules.” The statement noted that such pressures “weigh most heavily on EMDEs.”

While the joint statement did not name any country, the remarks come against the backdrop of U.S. tariff actions that have disrupted global trade. The ministers reaffirmed support for an “open, transparent, inclusive, non-discriminatory, and rules-based multilateral trading system with the WTO at its core.”

**Payments and local currencies**

The BRICS Payment Task Force, the group said, had been studying interoperability between cross-border payment and messaging channels as part of the BRICS Cross-Border Payments Initiative. Members encouraged further work on mechanisms that are “fast, low-cost, accessible, efficient, transparent and secure.”

However, the statement acknowledged that there is “no one-size-fits-all approach” to promoting local-currency settlements and said such efforts would respect national priorities. The statement stopped short of announcing a common BRICS currency or a unified payments system.

**Development finance and new initiatives**

The ministers encouraged the New Development Bank to expand local-currency financing, diversify funding sources and mobilize resources for high-impact projects. They welcomed progress on the BRICS Multilateral Guarantees initiative, designed to mobilize private capital and reduce financing costs for infrastructure projects in BRICS and other developing economies.

Technical work will continue on a proposed New Investment Platform, with members supporting a phased, consensus-based approach that respects national sovereignty and differing regulatory frameworks.

The group also noted the establishment of the BRICS Task Force on Growth and Development, under India’s chairship, to address shared challenges including development finance, digital public infrastructure, artificial intelligence, structural reforms, climate finance and sustainable development. The BRICS-NDB Knowledge Portal was launched to share development experiences and policy innovations.

**Customs, insurance and cyber cooperation**

According to the joint statement, as reported by The Economic Times, the members reached convergence on a Customs Mutual Administrative Assistance Agreement, with countries in a position to do so confirming in-principle approval subject to domestic processes. They also agreed to strengthen cooperation on authorized economic operator programs and joint customs enforcement operations.

India proposed hosting a BRICS Risk Lab at GIFT City International Financial Services Centre in Gujarat to support common risk models and strengthen insurance and reinsurance capacity. The statement said interested members expressed support for advancing discussions.

On cybersecurity, BRICS members backed annual cyber exercises and greater information sharing on cyber incidents affecting the financial sector.

**AI and emerging technologies**

The bloc adopted an “EMDE-centric” approach to assessing the opportunities and risks of artificial intelligence and quantum computing in finance, calling for responsible deployment while strengthening regulatory oversight.

Separately, Finance Minister Nirmala Sitharaman, speaking at the Global Fintech Fest 2026, described AI as a “double-edged sword” that can strengthen fraud detection but also enable sophisticated attacks. She urged regulators to explore a “soft touch” framework for emerging technologies and called on the Reserve Bank of India to accelerate its digital rupee pilot programs. “Is there a way in which we can do a soft touch regulation … without affecting the innovative threshold?” she asked, adding that “responsibility must remain human and institutional.”

**The global outlook**

The finance chiefs warned that “risks to the global economic outlook remain elevated,” reflecting persistent geopolitical tensions, trade fragmentation and protectionism, policy uncertainty, fiscal and inflationary pressures, growing debt and financial vulnerabilities.

BRICS central banks held 19 meetings and four in-person events during India’s chairship, producing 13 reports and technical papers. The group said it would continue work through 2026, with China set to assume the chairship in 2027.