Modern Diplomacy website said that the BRICS common currency and the new payment system to replace SWIFT will likely be introduced at the BRICS summit next October in Kazan, Republic of Tatarstan, Russia.
In an effort to establish a common resolve to achieve these economic policy goals, BRICS has extensively deliberated over many months on the effectiveness and importance of newly designed mechanisms and a balanced approach. to counterbalance the Western-dominated USD system in the world.
Strictly following the guidelines and resolutions adopted at the XV BRICS summit in South Africa, several initiatives under Russian leadership have achieved significant progress and achievements.
The introduction of a common BRICS payment system will be the main topic of discussion at the upcoming summit, which will be the final event of Russia's BRICS presidency - said Ms. Viktoria Panova, head of a the panel of experts tasked with overseeing Russia's presidency, said.
"Active efforts are underway to create a financial settlement mechanism that will make cooperation between BRICS countries easier, maintaining their sovereign trade and economic exchanges. This issue top of the agenda because every member of the group considers it important" - said expert Viktoria Panova.
At the end of July, news emerged that BRICS members had developed a system similar to SWIFT - the international payment system from which Russia was disconnected after conducting a military operation in Ukraine. This mechanism will operate on the basis of the BRICS Bridge supranational payment platform.
Payments will be made in the national currencies of the BRICS countries, while the New Development Bank (NDB) will act as a platform for integration, conversion and clearing.
As the BRICS association continues to challenge the dollar 's dominance in global markets, creating a payment system has become a top priority, with the financial project aiming for a launch at the conference. upcoming summit in 2024.
The establishment of the new system will allow developing countries, especially in the Southern Hemisphere, to reduce their dependence on the USD, while promoting the use of their own national currencies for trade settlement. .
The New Development Bank (NDB), established by BRICS members in 2015 as an alternative to multilateral financial institutions, has now welcomed four countries into membership: Bangladesh, the Emirates United Arab Emirates (UAE), Uruguay and Egypt.
The founding members of the NDB are the founding members of BRICS including Brazil, Russia, India, China and South Africa.
