BRICS Gives Huge Update: Non-Members Can Settle Trade In New Payment System
Russian Foreign Minister Sergey Lavrov announced that Brazil, which chairs the next summit in July, has proposed to create a new payment system where non-BRICS members can settle trade and cross-border transactions without incorporating the US dollar for settlements.
If non-member countries begin settling trade with the new payment system launched by BRICS, the US dollar could enter the path of decline. The US dollar could lose out on the global supply and demand mechanism making other currencies lead the charge.
Also Read: De-Dollarization: China Dumps $23 Billion Worth of US Dollars
BRICS Provides Major Update: Non-Members Will Be Allowed to Trade in the New Payment System
Lavrov confirmed that the upcoming initiative by BRICS is to allow non-members to settle trade in the new payment system. “There are a number of other initiatives currently under consideration within the BRICS format. One of them being a proposal by Brazil to create an alternative payment platform, with work underway on this track. I am confident that countries, even those outside BRICS, will have access to such mechanisms when they are created.”
Also Read: What Are the Advantages of a BRICS Currency?
He added that the new BRICS payment system will be independent and not rely on the Western financial mechanism. The platform will not depend on SWIFT, the US dollar, or the euro and pound, but will be an independent system. “There is an opportunity to form payment platforms independent of external influence. One example being the financial messaging system of the Bank of Russia. It is convenient, and it does not depend on any SWIFT network,” the minister noted.
Also Read: What Happens If BRICS Ditches the US Dollar?
It is not known when will the new BRICS payment system make its debut in the global financial markets. No further details about the new system have been revealed by the alliance. However, they will discuss the developments further in the upcoming 17th summit in July. The summit is scheduled to be held in Rio De Janeiro on July 7 and 8, 2025.
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BRICS Gives Huge Update: Non-Members Can Settle Trade In New Payment System
Russian Foreign Minister Sergey Lavrov announced that Brazil, which chairs the next summit in July, has proposed to create a new payment system where non-BRICS members can settle trade and cross-border transactions without incorporating the US dollar for settlements.
If non-member countries begin settling trade with the new payment system launched by BRICS, the US dollar could enter the path of decline. The US dollar could lose out on the global supply and demand mechanism making other currencies lead the charge.
Also Read: De-Dollarization: China Dumps $23 Billion Worth of US Dollars
BRICS Provides Major Update: Non-Members Will Be Allowed to Trade in the New Payment System
Lavrov confirmed that the upcoming initiative by BRICS is to allow non-members to settle trade in the new payment system. “There are a number of other initiatives currently under consideration within the BRICS format. One of them being a proposal by Brazil to create an alternative payment platform, with work underway on this track. I am confident that countries, even those outside BRICS, will have access to such mechanisms when they are created.”
Also Read: What Are the Advantages of a BRICS Currency?
He added that the new BRICS payment system will be independent and not rely on the Western financial mechanism. The platform will not depend on SWIFT, the US dollar, or the euro and pound, but will be an independent system. “There is an opportunity to form payment platforms independent of external influence. One example being the financial messaging system of the Bank of Russia. It is convenient, and it does not depend on any SWIFT network,” the minister noted.
Also Read: What Happens If BRICS Ditches the US Dollar?
It is not known when will the new BRICS payment system make its debut in the global financial markets. No further details about the new system have been revealed by the alliance. However, they will discuss the developments further in the upcoming 17th summit in July. The summit is scheduled to be held in Rio De Janeiro on July 7 and 8, 2025.
Read More