Why in news
Prime Minister Narendra Modi spoke at the 16th BRICS summit in Kazan, discussing key issues
Modi highlighted the need for greater financial cooperation among BRICS countries, advocating for trade in local currencies.
The summit issued a common statement addressing global challenges, including conflicts and the need for a better international financial system.
What is financial integration
It’s the process of enhancing economic cooperation and coordination among countries, allowing for easier transactions and financial flow
It involves conducting trade in local currencies rather than relying solely on major currencies like the U.S. dollar.
It aims to facilitate smoother payments between countries, making trade more efficient and less dependent on external financial systems.
Countries work together to strengthen banking networks and develop mechanisms for easier financial transactions.
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