MWE Correspondent
Finance officials from BRICS member states held technical consultations in Moscow on 20–21 February 2026, advancing discussions on alternative trade settlement mechanisms that may incorporate gold-linked instruments and expanded use of local currencies.
The meeting, organized under the rotating BRICS coordination framework, focused on reducing dependency on Western-dominated financial systems and mitigating risks associated with sanctions and currency volatility.
According to briefing notes released after the consultations, experts evaluated models that would combine a basket of member currencies with commodity-backed reference mechanisms. While no unified BRICS currency was announced, delegates confirmed continued study of gold-based stabilization tools within broader settlement reforms.
The discussions also reviewed the expanding role of the New Development Bank (NDB), which has increased local-currency lending across member states. Officials suggested the NDB could serve as a central platform for clearing and settlement arrangements in future cross-border trade frameworks.
China’s Cross-Border Interbank Payment System and Russia’s domestic financial messaging platforms were examined as complementary systems to reduce reliance on SWIFT, the global financial messaging network. Analysts noted that diversification of payment channels has become a strategic priority amid ongoing geopolitical fragmentation.
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The talks took place against a backdrop of broader debates on dollar dominance in global trade. According to data from the International Monetary Fund (IMF), the U.S. dollar still accounts for the majority of global foreign exchange reserves, but its share has gradually declined over the past decade.
BRICS policymakers argue that alternative settlement frameworks are not designed to abruptly replace the dollar but to provide resilience and flexibility in times of geopolitical tension. This gradualist approach reflects the complexity of shifting entrenched financial systems.
For African economies — particularly those deepening ties with BRICS members — the implications are significant. Expanded local currency trade and commodity-linked settlement models could intersect with regional initiatives such as the African Continental Free Trade Area (AfCFTA), potentially reducing exposure to exchange rate shocks.
Economic observers caution that institutional coordination, liquidity depth, and investor confidence remain critical hurdles. However, the February 2026 Moscow consultations signal that BRICS financial architecture reforms are moving from rhetoric toward structured technical planning.
