BRICS Esteblish Local Currency Bond Markets

BRICS countries, namely Brazil, Russia, India, China and South Africa, adopted a joint declaration on a number of issues, including terrorism, Mosul’s liberation, the Israeli-Palestinian conflict, corruption and weapons in outer space during their meetings in the coastal Chinese city of Xiamen.

Among other issues Declaration of Xiamen expresses important intention in the world currency exchange. BRICS leaders plan to avoid dollar and euro in international transactions.

The leaders of the five BRICS countries agreed to establish a bond fund in national currencies in order to contribute to capital sustainability in BRICS member states.

“We agree to promote the development of BRICS Local Currency Bond Markets and jointly establish a BRICS Local Currency Bond Fund, as a means of contribution to the capital sustainability of financing in BRICS countries, boosting the development of BRICS domestic and regional bond markets, including by increasing foreign private sector participation, and enhancing financial resilience of BRICS countries,” the declaration’s text read.

The leaders of the five countries have also agreed to increase the use of national currencies, including in direct investment.

“We agree to communicate closely to enhance currency cooperation, consistent with each central bank’s legal mandate, including through currency swap, local currency settlement and local currency direct investment, where appropriate, and to explore more modalities of currency cooperation,” the declaration said.

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