Amid the ongoing expansion of the BRICS bloc, Russian President Vladimir Putin has called on the alliance to reform global finance. Specifically, Putin has stated that the alliance must create a system that supports its commitment to trade settlements in national currencies.
The statements arrive as the bloc has explored the idea of an alternative to Western SWIFT. Specifically, through the development of a payment system in conjunction with the bloc’s de-dollarization efforts. Especially as they are set to welcome six countries next year.
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Putin Says BRICS Must Play Role in Global Finance Reform
For much of the year, the BRICS economic alliance has observed immense growth. Subsequently, it had the entire world watching as it announced its membership would grow by six nations at its annual summit. Therefore, economic powerhouses like Saudi Arabia and the United Arab Emirates (UAE) contribute to the collective cause.
Now, as BRICS has continued its de-dollarization efforts, Vladimir Putin has called on the bloc to reform global finance. Specifically, through the creation of a payment system that is utilized within the alliance alone. Similar in functionality to the Western-based SWIFT system.
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“But to work on improving the entire financial system—both global finance and financial relations within the BRICS—we, of course, must and will do so,” Putin said. Moreover, the conversations arrive as the talk of an alternative BRICS currency has quieted.
Still, BRICS has contemplated the creation of a digital BRICS currency. Additionally, these discussions have all been occurring with the same end: to lessen US dollar reliance. For the bloc, the creation of a payment system to facilitate local currency settlement is vital. Its implementation could rapidly hasten the promotion of such currencies and lessen the reliance on the greenback.