BRICS Finance Chiefs Call for IMF Reforms, Local-Currency Settlements; Criticize Unilateral Tariffs

Finance ministers and central bank governors of BRICS countries, meeting in Mumbai on Thursday, issued a joint statement Friday demanding sweeping reforms of the International Monetary Fund and World Bank and calling for greater use of local currencies in trade and investment. The bloc also sharply criticized the unilateral imposition of tariffs and non-tariff barriers, warning that such measures distort trade and weigh most heavily on emerging-market and developing economies (EMDEs).

“We 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 joint statement said, without naming any specific country. The group reaffirmed its support for a rules-based multilateral trading system with the WTO at its core.

The global economy, the statement noted, is facing “significant headwinds” with elevated risks from geopolitical tensions, trade fragmentation, protectionism, policy uncertainty, fiscal and inflationary pressures, and growing debt and financial vulnerabilities.

**IMF and World Bank Reform**

Renewing a long-standing demand, the BRICS finance chiefs called for “meaningful quota realignment” under the IMF’s 17th General Review of Quotas, arguing that governance structures must reflect the transformation of the global economy since the Bretton Woods institutions were established. They urged the IMF to implement without further delay the quota increases agreed under the 16th General Review.

“We reiterate that quota realignment should reflect countries’ relative positions in the global economy, increase the quota and voting shares of Emerging Markets and Developing Economies (EMDE) and should not come at the expense of developing countries,” the group said. They also insisted that any new quota formula protect the shares of the poorest members and that voluntary financial contributions should not influence quota allocation, governance representation, or voting power.

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

**Cross-Border Payments and Local Currencies**

The bloc endorsed further work on the BRICS Cross-Border Payments Initiative, with the BRICS Payment Task Force studying the interoperability of payment and messaging channels. The group recognized that there is “no one-size-fits-all approach” to promoting local-currency settlements and stressed that such efforts would respect national priorities.

The statement encouraged the task force to continue discussions to facilitate practical solutions for cross-border payments that are fast, low-cost, more accessible, efficient, transparent, and safe. It stopped short of announcing a common BRICS currency or a unified payments system.

**Development Finance and New Initiatives**

The finance chiefs backed a greater role for the New Development Bank (NDB) in financing development and infrastructure projects across BRICS and the Global South. They encouraged the NDB to expand local-currency financing, diversify funding sources, and mobilise resources for high-impact projects. Progress was noted on the proposed BRICS Multilateral Guarantees initiative, aimed at mobilizing private capital and lowering financing costs.

India proposed hosting a BRICS Risk Lab at the GIFT City International Financial Services Centre in Gujarat, a platform to support common risk models and specialist capabilities in insurance and reinsurance. Several interested members expressed support for further discussions, the statement said.

On customs cooperation, members reached convergence on a Customs Mutual Administrative Assistance Agreement, with countries confirming in-principle approval subject to domestic processes. They also agreed to work toward stronger cooperation on authorised economic operator programmes and joint enforcement operations.

The establishment of the BRICS Task Force on Growth and Development was welcomed, along with the launch of the BRICS-NDB Knowledge Portal to share development experiences and policy innovations.

**Technology and Climate**

The bloc adopted an EMDE-centric approach to assessing opportunities and risks from artificial intelligence and quantum computing in finance, calling for responsible deployment while strengthening regulatory oversight. Members also backed annual cyber exercises and greater information sharing on cyber incidents affecting the financial sector.

On climate, the group reaffirmed commitment to implementing the UN climate convention and the Paris Agreement, emphasizing common but differentiated responsibilities.

**Chairship and Next Steps**

The ministers said BRICS central banks, under India’s 2026 chairship, held 19 meetings and four in-person events, producing 13 reports and technical papers. Work will continue through 2026, with China taking over the chairship in 2027.

According to one report, India will host the BRICS Leaders’ Summit this weekend in New Delhi, with leaders from Russia, China, and Iran expected to attend.