BRICS may sign pact to extend credit in local currencies

As BRICS leaders begin summit in New Delhi on 29th March, development banks of Brazil, Russia, India, China and South Africa's are in advanced stage of reaching a pact for extending cross-country credit in local currencies of the member countries.

"...Such intra-BRICS initiatives will not only contribute to enhanced intra-BRICS trade and investments but would also facilitate our economic growth in difficult economic times," Commerce and Industry Minister Anand Sharma said on Tuesday.

Sharma and four other BRICS trade ministers would be meeting on Wednesday, in the run-up to the Summit on Thursday.

He said there is a large untapped growth potential of intra-BRICS trade and investments, "which we are presently focusing on for exploitation".

Inter-BRICS trade is USD 86 billion.

Demand slowdown in the western markets are hurting export and growth prospects of some BRICS members including India.

China, the world's second-largest economy, registered a trade deficit of USD 31.48 billion in February.

The country has cut its economic growth forecast to 7.5 percent from 8 per cent.

India's economy is expected to grow by 6.9 per cent in the current fiscal, the slowest pace in three years.

"While the new risks to global economy emanating from euro zone debt crisis and uncertainty in global energy markets will have their impact upon economic growth in the BRICS countries, I am confident BRICS countries will ... register strong growth," Sharma said.

A number of new areas for deepening cooperation among the BRICS countries are expected to be discussed at the meeting