Russia will present a proposal for a new international financial system to other BRICS countries at a BRICS summit this week, Reuters reported.
Citing a document provided to reporters by Moscow ahead of the BRICS summit, Reuters said the system is supposed to be immune to Western sanctions and could end the dominance of the US dollar in international transactions and exchanges.
According to Reuters, the new payment platform is based on blockchain technology and uses digital tokens backed by the national currencies of participating countries.
The new format will allow such currencies to be exchanged easily and securely without the need to transact in USD 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.
The proposal is said to involve the creation of a “BRICS Clear” platform to settle securities transactions.
The proposal also encourages member states to create a common rating methodology but does not mention the establishment of a common BRICS rating agency.
The document is said to accuse existing international financial institutions, including the International Monetary Fund (IMF), of serving the interests of the United States and its allies.
Moscow did not comment on the Reuters article and has not made public any documents like the one 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 exerting political pressure.
BRICS discussed alternatives to the Western-dominated global payments system, payment depositories and rating agencies, Siluanov said.
The Russian finance minister also said that new financial digital assets should be used in international payments. “It is faster, cheaper and more reliable. Operations are carried out without the involvement of banks and infrastructure of third countries,” he explained. However, the specifics of the proposal remain 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 concluded in national currencies (the ruble and the 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 favor of 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 Turkey, have applied to join BRICS.
