BRICS nations are evaluating a digital payments framework to allow cross-border transactions in local currencies. The goal is to mitigate the impact of Western sanctions and reduce reliance on the US dollar.

Brics nations are assessing whether a digital payments framework linking their currencies could lessen the impact of Western sanctions, tariffs and US dollar volatility without destabilising the Washington-led global financial system. Under the plan proposed by India’s central bank, Brics is looking to allow cross-border transactions to be settled in local currencies. Its feasibility depends on how far the bloc’s members can lessen their reliance on Western-controlled payment channels without...