Reuters reported that Russia will present a proposal for a new international financial system for other BRICS countries at the BRICS summit this week.
Citing a document provided by Moscow to the press ahead of the BRICS summit, Reuters said the system is said to be immune to Western sanctions and could end the dominance of the US dollar in international trade and exchanges.
According to Reuters, the new payment platform is based on blockchain technology and uses digital symbols backed by the national currencies of participating countries.
The new format would allow such currencies to be exchanged easily and securely without the need for USD transactions everywhere.
The new platform is also expected to rely on a network of commercial banks linked together through the central banks of the BRICS countries.
This proposal is said to be related to the creation of a " BRICS Clear" platform to settle securities transactions.
The proposal also encourages member states to create a common rating method but does not mention the establishment of a common BRICS rating agency.
The document is seen as an accusation against existing international financial institutions, including the International Monetary Fund (IMF), for serving the interests of the United States and its allies.
Moscow did not comment on the Reuters article and did not disclose any documents as cited in it.
Last week, Russian Finance Minister Anton Siluanov presented a proposal on reforming the international financial system to the finance ministers and central bank governors of the BRICS countries.
On this occasion, Mr. Siluanov also criticized the West for its efforts to use the international financial system and the US dollar as a means of political pressure.
According to Mr. Siluanov, BRICS discussed alternatives to the Western-dominated global payment system, payment depositories and rating agencies.
The Russian Finance Minister also said that new financial digital assets should be used in international payments. Its faster, cheaper, and more reliable, he explained. The operations are conducted without the participation of banks and infrastructure of third countries". However, the specifics of the proposal are still unclear.
Russia has been actively reducing the use of the US dollar in its international transactions. More than 95% of bilateral agreements between Russia and Moscow's largest trading partner, China, are in national currencies (rupes and yuan) - Russian Prime Minister Mikhail Mishustin said in August.
According to Minister Siluanov, BRICS countries will further promote the reduction of the share of the USD in bilateral transactions in the direction of benefiting national currencies.
The BRICS Summit is scheduled to be held in Kazan, southwestern Russia, from October 22-24, 2024. Russia is currently the rotating BRICS chair this year.
BRICS currently includes Brazil, Russia, India, China, South Africa, Egypt, Iran, the United Arab Emirates (UAE) and Ethiopia. According to Russian officials, more than 30 countries, including NATO member Türkiye, have applied to join BRICS.
