During the Russian Energy Week Forum in Moscow, President Vladimir Putin announced that the BRICS countries plan to develop an independent payment system.
This system should make foreign trade transactions more efficient and independent of Western financial systems. The initiative is an important step in further economic cooperation between the BRICS countries, which now also include Iran and the United Arab Emirates in addition to Brazil, Russia, India, China and South Africa.
Reduce dependence on the West
Putin emphasized that the aim of the new payment system is to reduce dependence on Western financial structures, such as SWIFT.
We are working with the BRICS countries to establish our own payment and settlement system, which will create the conditions for efficient and independent handling of foreign trade.
The timing of this project is not surprising. BRICS has been investigating alternative financial systems for some time, partly in response to increasing pressure from the West. Since the start of the war between Russia and Ukraine, Russia has faced heavy sanctions and exclusion from international payment systems. The development of an independent payment system for BRICS countries has therefore become a top priority.
Report on alternative payments forthcoming
Russian Foreign Minister Sergey Lavrov announced that a report on alternative payment systems will soon be presented at a summit in Kazan. This plan is led by Brazilian President Lula da Silva and aims to facilitate cross-border payments using national currencies. This should reduce the use of the US dollar and the euro in trade between BRICS countries, according to Russian news agency Tass.
Increasing influence of BRICS
Lavrov noted that much bilateral trade with BRICS countries already takes place in national currencies. He indicated that this trend will continue.
“With the People’s Republic of China, we conduct more than 90% of our trade in national currencies, without using the dollar. In trade relations with India, this figure reaches 60%.”
In addition, Russia has taken steps to establish an independent banking network within the BRICS bloc. This should increase the group’s financial influence and attract other countries seeking alternatives to the dominance of Western financial institutions. With these developments, BRICS appears to be positioning itself increasingly firmly on the global financial stage. More and more countries are showing interest in joining BRICS or wanting to intensify cooperation with the bloc.
Conclusion
By developing their own payment system, the BRICS countries want to increase their economic independence and offer an alternative to the Western financial infrastructure. This is not only a strategic move, but also a signal that the bloc’s influence in the international financial world continues to increase.
Source: https://newsbit.nl/rusland-en-brics-werken-aan-een-onafhankelijk-betaalsysteem/
