BRICS: Putin Eyes Larger Role in International Monetary System - A New Financial Order?
Russian President Vladimir Putin is pushing for a significant shift in the global financial landscape, asserting BRICS' efforts to boost its role in the international monetary system. The five-nation BRICS group, comprising Brazil, Russia, India, China, and South Africa, are actively exploring alternatives to the existing system, particularly the dominance of the US dollar.
Putin's BRICS Financial System Proposal: What We Know
According to The Economist, Russian President Vladimir Putin is set to propose creating a new financial system at the upcoming BRICS summit in Kazan. This bold move signals a desire to reshape international finance. President Vladimir Putin said on Wednesday that the BRICS countries are currently working on setting up a new system designed to operate outside of Western control.
De-dollarization: BRICS' Strategic Goal
Putin said the BRICS alliance is enhancing the role of BRICS in the international monetary system, expanding inter-banking cooperation as well as boosting the use of national currencies in trade settlements. This move towards de-dollarization is a central tenet of the BRICS strategy. Russia's finance ministry and central bank report details a plan to transform international financial relations. By proposing an alternative payment system, advocating for reforms to global financial institutions, and seeking to expand BRICS’ role in key areas such as food security, the alliance aims to create a more balanced and equitable global financial order.
The BRICS Bridge and Cross-Border Payments
Key to this strategy is the BRICS Bridge digital platform. Furthermore, the BRICS Cross-Border Payment Initiative (BCBPI) will use national currencies, not the US dollar, for international transactions, a significant step in reducing reliance on the dollar. The group will also work on creating a payment system based on blockchain and digital currencies.
Will BRICS Succeed in Challenging the Dollar?
The long-term implications of these initiatives remain to be seen. However, Putin's ambition for a larger BRICS role in the international monetary system marks a pivotal moment in the ongoing evolution of global finance, potentially offering a viable alternative to the existing world order.