BRICS COUNTRIES INK PACT TO TRADE IN LOCAL CURRENCIES
A major outcome of the fourth BRICS summit was the signing of an agreement on providing credit facility in local currencies. This would seek to reduce the demand for fully convertible currencies for trade transactions among BRICS countries - Brazil, Russia, India, China and South Africa. Prime Minister Manmohan Singh has said that all the nations have agreed to examine in greater detail a proposal to set up a BRICS-led South-South Development Bank, funded and managed by the BRICS and other developing countries. He also said that the five BRICS countries had directed their respective finance ministers to set up a joint working group for an in-depth analysis of the proposal. The issues such as easier business visas must be prioritised. As large trading countries, BRICS have a strong interest in removing barriers to trade and investment flows and avoiding protectionist measures.