“The new BRICS payments system could come in the form of a digital-currency system that allows for central banks to deal with local currency transactions directly.”
(Business Insider)
Over the past month, there have been significant developments within the BRICS group, ranging from expressions of interest from countries to join (including official applications from Malaysia and Thailand), to the launch of a new BRICS payment system and efforts towards financial system integration under the auspices of the New Development Bank.
The linked video clip provides a brief update on the significant financial events, as of July 2024. See link below.
The initiative for the new payment system came from the summit of the BRICS countries in Johannesburg last year (2023) where the group called for more trade and lending in their national currencies.
Russian Foreign Minister Sergey Lavrov, speaking at the two-day BRICS Foreign Ministers Meeting in June 2024, said BRICS countries are developing a payments platform that will allow them to bypass the US dollar. Lavrov said that the platform will improve the international monetary system and allow payment in national currencies for mutual trade.
In April 2024 Lavrov suggested to Russian media that this new platform was likely to be in the form of a digital-currency-based settlement system.
This would allow BRICS members to by-pass the West-controlled SWIFT payment system for intra-bloc transactions – SWIFT would no doubt continue, but a viable alternative would be available to BRICS members. SWIFT is used as a key tool by the US (and its G7 allies) against many countries subjected to their sanctions.
WATCH VIDEO:
Sources:
- Observer Diplomat, July 30, 2024. https://observerdiplomat.com/brics-officially-announces…/
- The process of accomplishing the task, Aug 3, 2024. https://youtube/
- Business Insider, June 11, 2024. https://www.businessinsider.nl/russia-says-its-working…/