(MENAFN)
Using national currencies for trade allows BRICS nations to avoid pressure from Western financial systems, Russian Finance Minister Anton Siluanov said on Sunday. Speaking at the 17th BRICS summit in Rio de Janeiro, Siluanov noted that recent sanctions, such as the freezing of Russia’s dollar and euro reserves after the Ukraine conflict escalated in 2022, have accelerated efforts among BRICS members to reduce reliance on Western currencies.

Siluanov told RT that Russia is prepared to offer solutions to help minimize the risks of sanctions. These options were discussed during a meeting of the New Development Bank (NDB), which was created by BRICS in 2015 to meet the needs of developing economies. The mechanisms would exclude Western financial infrastructure and currencies from sanctioned countries, offering protection for the NDB against such risks, Siluanov explained.

He highlighted that conducting trade in national currencies has proven to be both stable and independent of Western institutions, which can suspend transactions without warning. Instead, BRICS nations are carrying out settlements through reliable banks with direct correspondent accounts, bypassing Western-controlled systems like SWIFT.

Since 2022, when major Russian banks were disconnected from SWIFT, Moscow and its trade partners have worked to limit their exposure to Western financial systems by using alternative banking platforms and expanding the use of national currencies.

Siluanov pointed to Russia’s trade with China as a prime example, noting that nearly all transactions are now completed in rubles and yuan, with bilateral trade reaching $245 billion last year.

Founded in 2006, BRICS includes Brazil, Russia, India, China, and South Africa. More recently, Egypt, Ethiopia, the UAE, and Indonesia joined the group. At its 2024 summit in Kazan, Russia, BRICS introduced a new ‘partner country’ status to accommodate growing interest from over 30 nations.

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