Banks close to agreement on local currency settlement

SANYA, Hainan - Agreement on developing settlement and credit in local currencies will be reached among BRICS countries, executives of five national development banks announced on Wednesday, a move expected to increase the role of their national currencies.

The five banks - representing Brazil, Russia, India, China and South Africa - will sign a framework agreement on financial cooperation on Thursday as the leaders of the five BRICS countries at the summit look on.

The banks - China Development Bank Corporation (CDB), Banco Nacional do Desenvolvimento Economico e Social (BNDES), Development Bank of Southern Africa, Vnesheconombank and Export-Import Bank of India - will launch the first intergovernmental cooperative project between BRICS countries, said Vladimir Dmitriev, chairman of Vnesheconombank, the state corporation bank for development and foreign economic affairs of Russia.