(14 October 2024 – Global) In a report published ahead of the upcoming BRICS summit next week, Russia is advocating for the establishment of a new cross-border payment system among BRICS countries.
As reported in Bloomberg, the proposal could allow the countries, including Brazil, Russia, India, China, South Africa, Iran, the United Arab Emirates, Ethiopia, and Egypt, to circumvent financial sanctions and decrease dependency on the US dollar.
The document, prepared by the Russian Finance Ministry, the Bank of Russia, and the Moscow-based consultancy Yakov & Partners, suggests the creation of a correspondent banking network to facilitate cross-border transactions in local currencies. It also proposes the establishment of direct links between central banks, centres for mutual trade in commodities, and the use of distributed ledger technology, or a new multinational platform, to settle transactions using tokens.
The proposed system would “ring-fence its participants from any external pressures such as extraterritorial sanctions”, the report said.