BRICS to facilitate trade in local currencies

Leaders of BRICS nations meeting in New Delhi today signed an agreement on lines of credit in local currencies for trade under an interbank cooperation mechanism and the multilateral letter of credit confirmation facility between Exim and development banks of member nations.

And, possibly within the next three years, the grouping is expected to give final shape to a joint development bank that would promote trade in local currencies.

Brazilian president Dilma Rousseff, Russian president Dmitry Medvedev, Indian prime minister Manmohan Singh, Chinese president Hu Jintao and South African president Jacob Zuma pitched for an expanded role of emerging and developing economies in the global economic order at their meeting in New Delhi.

The agreements mark the initial steps for intra-BRICS trade in local currency.

Prime Minister Manmohan Singh said the agreements would boost trade among the BRICS countries. He also pressed for easing of business visas to facilitate increase in intra-grouping trade and investment.

During their fourth summit meeting, in New Delhi, the leaders of BRICS agreed to have closer coordination among their economies to meet the challenges facing the global economy.

They discussed issues related to global governance, ways of financing and promoting sustainable development and the challenges of energy and food security.

The BRICS Delhi Declaration also voiced strong opposition to any military action or rhetoric with regard to Syria and Iran.

Iran tensions cannot be allowed to escalate into conflict as it would result in consequences, which will be in no one's interest, the leaders said, adding that Iran has a right to peaceful use of nuclear energy and that they would support resolution of issues through dialogue.

Key highlights of the Delhi Declaration are:

• Enhancing growth and trade in BRICS countries
  
• Reforms in IMF, World Bank and UN Security Council
  
• Supporting developing country candidate for World Bank
  
• Reviving WTO's Doha Round of negotiations
  
• Infrastructure development in BRICS region
  
• Prioritising food, water and energy security solutions
  
• Solving income inequalities by equitable distribution of incomes
  
• Creation of jobs and skill development
  
• Sharing development experiences to solve problems
  
• Co-operation on West Asia, North Africa, Iran, Afghanistan at the UN
  
• Countering terrorism and piracy

Earlier, addressing the plenary session of the BRICS summit, the prime minister said that BRICS must ensure policy co-ordination to revive economic growth. He added that political disruptions that create volatilities in global energy markets and affect trade flow would have to be avoided.

Manmohn Singh said the common obstacles like volatility in food and energy prices and objectives like reconciling growth with environmental objectives should bind the members together even though their responses to political challenges may differ.