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BRICS payment systems gain traction as alternatives to US dollar

GrafaGrafa2024/09/17 05:40
By:Mahathir Bayena

BRICS nations are witnessing growing global interest in their alternative payment platforms, which aim to reduce reliance on the U.S. dollar and euro.

Russian Foreign Minister Sergey Lavrov highlighted the appeal of these systems during a press conference after talks with Egyptian Foreign Minister Badr Abdelatty.

Lavrov noted that BRICS’ payment platforms provide countries with the ability to engage in trade, investment, and other economic activities without depending on currencies perceived as political tools by Western powers.

Lavrov emphasised the significance of these platforms in enabling countries to avoid U.S. and Western sanctions, stating, "Many are attracted by the fact that payment platforms are being developed within BRICS, which allow trading, investing, carrying out other economic operations without being dependent on those that decided to weaponise the dollar and the euro."

The BRICS economic bloc, originally composed of Brazil, Russia, India, China, and South Africa, recently expanded to include Argentina, Egypt, Ethiopia, Iran, Saudi Arabia, and the United Arab Emirates (UAE).

Key initiatives under development include BRICS Pay, BRICS Bridge, Russia’s SPFS, and a proposed BRICS financial messaging system.

These platforms aim to provide alternatives to Western-controlled systems like the dollar and SWIFT by promoting the use of local currencies for bilateral trade settlements.

The goal is to enhance financial independence for member countries and reduce vulnerability to geopolitical risks.

Lavrov pointed out that these new payment systems allow countries to manage their economies more autonomously, mitigating the risk of sanctions from the U.S. and its allies.

He noted that concerns are growing among nations about the threat of sanctions, warning, "Everyone understands that any one may face U.S. or other Western sanctions."

The BRICS payment platforms offer a potential pathway for countries looking to maintain sovereignty in their financial dealings while minimising exposure to geopolitical pressures.

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