The BRICS alliance is considering new financial mechanisms for trade settlements, including cross-border payment options using local currencies and digital technologies, Russian Finance Minister Anton Siluanov has confirmed.
Speaking to the Russian news
agency Tass, Siluanov said that discussions are underway to develop an
alternative financial infrastructure that could facilitate bilateral trade
without reliance on the US dollar. He highlighted the potential use of
blockchain networks and digital financial assets to streamline transactions.
"We are considering
various financial innovations within BRICS, including a cross-border payment
system that could be based on bilateral settlements using national currencies,
while also integrating digital technologies," Siluanov said.
The move is seen as part of a
broader effort to enhance economic cooperation among BRICS nations and reduce
dependence on Western financial systems. Siluanov emphasised that strengthening
the bloc’s financial infrastructure is vital for boosting trade and economic
growth among member states.
A Shift Away from the Dollar?
The 17th BRICS summit, set to
take place in Rio de Janeiro on 6-7 July 2025, is expected to focus on
alternative payment systems. Countries such as China, Russia, and Iran are
particularly keen to explore new trade mechanisms that bypass the US dollar.
Both Russia and Iran have faced
economic sanctions that limit their access to global financial systems,
prompting them to seek alternative trade routes. Meanwhile, China is
positioning itself as a dominant global economic player and sees the BRICS
alliance as a key platform to advance its economic agenda.
Despite shared interests in
moving away from the US dollar, the BRICS nations have differing economic
structures and objectives, which may pose challenges in reaching a unified
financial strategy. However, the upcoming summit will provide a forum for
discussions on how to implement these financial innovations effectively.
The meeting in Brazil will be
chaired by the host nation, with all BRICS leaders expected to attend. Analysts
say the discussions could mark a significant step towards a new financial order
within the bloc, potentially reshaping global trade dynamics.
Post a Comment