BRICS commodity exchange trading could exceed $1T

Trading of agricultural and related products on a BRICS commodity exchange could surpass $1 trillion in the future, according to Eduard Zernin, CEO of Russia’s Grain Exporters Union.

This statement follows the Kazan Declaration from the recent BRICS summit, which endorses a Russian initiative to create a BRICS grain exchange that may expand to include various agricultural commodities.

President Vladimir Putin noted that the grain exchange could eventually evolve into a comprehensive commodity exchange, strengthening BRICS’s influence on global food security.

Zernin emphasised that the approval from BRICS leaders is a crucial first step towards establishing the exchange, requiring significant organisational efforts from agricultural and financial authorities within member countries.

The exchange aims to provide transparent trading of staple agricultural products while establishing accurate price indicators.

Zernin highlighted that the spot market for grain alone is estimated at around $90 billion annually, excluding derivatives. He said stated that the exchange must achieve international status to safeguard trade against external sanctions and manipulation.