Russian finance minister declares BRICS operating on own payment system
Date
10/16/2024 5:32:31 AM
(MENAFN) In a significant move towards economic independence, the BRICS nations are collaborating to establish their own international payments system. Russian Finance Minister Anton Siluanov revealed in an exclusive interview with RT Arabic that this initiative is a response to the increasing politicization of platforms reliant on Western infrastructure. The ongoing sanctions imposed on Russia, particularly by the United States, have compelled Moscow and its BRICS partners to seek alternative mechanisms for conducting trade without external restrictions.
Siluanov emphasized that the proposed cross-border payment infrastructure will utilize advanced technologies to facilitate faster and more cost-effective foreign trade transactions, free from external interference. "Our task is to create our own independent system, given the largely political decisions of the West," he stated, highlighting the collaborative efforts of BRICS finance ministries and central banks in this regard.
He underscored that BRICS aims to transcend political pressures, focusing instead on stimulating economic growth and enhancing the income of its citizens. The new payment system will incorporate the use of national currencies as well as digital currencies, allowing for a more flexible and secure trading environment among member countries.
The urgency of this development comes in the wake of significant financial isolation for Russia, particularly following the exclusion of major Russian banks from the SWIFT international payment system in 2022. This exclusion was part of a broader set of sanctions targeting Moscow due to its actions in Ukraine. In light of these challenges, Russian President Vladimir Putin announced last month that BRICS member states are jointly working on a payment and settlement framework specifically for trade within the bloc.
Currently chaired by Russia, the BRICS group includes Brazil, India, China, and South Africa, along with new members Iran, Egypt, Ethiopia, and the United Arab Emirates, who joined in January. This initiative reflects the bloc's commitment to enhancing economic cooperation and reducing reliance on Western financial systems, aiming to create a resilient and autonomous economic framework.
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