Cyril Ramaphosa Backs India-South Africa Local Currency Trade
South African President Cyril Ramaphosa has backed greater use of local currencies in trade and payments between India and South Africa, saying stronger financial links could reduce transaction costs and deepen economic cooperation between the two BRICS partners.
Ramaphosa Highlights Rupee-Rand Payment Potential
Ramaphosa said he personally experienced the ease of cross-border payments during his visit to India, using his South African bank card to purchase books priced in Indian rupees while the transaction was reflected in South African rand.
He cited the experience while advocating stronger payment connectivity between the two economies.
The remarks did not amount to the announcement of a dedicated bilateral rupee-rand payment system. However, they reflected broader efforts within BRICS to encourage local-currency settlements and improve interoperability between national payment networks.
BRICS Pushes Greater Use of Local Currencies
At the New Delhi summit, BRICS members backed further work on faster, cheaper and more secure cross-border payments.
The grouping has stopped short of adopting a common BRICS currency, instead focusing on practical mechanisms allowing trade and investment to be increasingly settled in existing national currencies.
Ramaphosa said BRICS should move ahead with stronger cross-border payment systems and deeper financial integration.
India-South Africa Economic Ties Set to Expand
Ramaphosa also called for deeper India-South Africa cooperation in trade, investment, infrastructure, agriculture, technology, critical minerals and renewable energy.
More than 150 Indian companies have invested over $10 billion in South Africa, generating more than 18,000 jobs.
South Africa is encouraging further Indian investment in sectors including pharmaceuticals, infrastructure, critical minerals and electric vehicle battery supply chains as both countries seek to expand their economic partnership.
