BRICS plans on discussing new international financial order
Date
10/21/2024 5:19:38 AM
(MENAFN) At the upcoming BRICS summit, Russia is set to unveil its proposal for a new international financial system, aiming to reshape global economic dynamics and reduce reliance on the US dollar. This initiative, highlighted in a document circulated by Moscow to journalists, is designed to create a financial architecture that is resilient to Western sanctions.
The proposed system is based on innovative blockchain technology and will utilize digital tokens that are supported by the national currencies of the participating BRICS countries—Brazil, Russia, India, China, and South Africa. This framework is intended to facilitate secure and efficient currency exchanges among member states, bypassing the traditional dependence on dollar transactions that dominate international trade.
Furthermore, the initiative includes the establishment of a new payment platform, which would be interconnected through a network of commercial banks that link to the central banks of each BRICS nation. This interconnected banking structure aims to enhance the flow of financial transactions and improve the overall efficiency of trade among member countries.
In addition to the payment platform, Russia's proposal outlines the creation of a ‘BRICS Clear’ platform designed for settling trade in securities. This move signifies a potential shift towards developing a unified financial infrastructure that could challenge existing global financial norms. The document also suggests the need for a common rating methodology among BRICS nations, though it stops short of advocating for the establishment of a joint BRICS rating agency.
The proposal criticizes current international financial institutions, such as the International Monetary Fund (IMF), for allegedly prioritizing the interests of the United States and its allies over those of other countries. This perspective reflects a growing sentiment among BRICS members that the existing global financial system is imbalanced and requires reform.
Although Moscow has not yet publicly commented on the details of this proposal or the document cited in the Reuters report, Russian Finance Minister Anton Siluanov has recently discussed the need for reform in the international financial system with his counterparts from other BRICS nations. This forthcoming summit represents a critical opportunity for BRICS to deliberate on this transformative vision, potentially paving the way for a new era in global finance that prioritizes the interests of emerging economies.
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