BRICS has made a significant announcement regarding the development of a new payment system that aims to eliminate the need for the US dollar in its financial transactions. Russian Foreign Minister Sergey Lavrov confirmed that this innovative system will not only facilitate cross-border transactions but will also function as a comprehensive financial framework. The introduction of this payment system is expected to attract emerging economies seeking alternatives to the US dollar, potentially leading to a transformative shift in the global financial landscape.
New Features of the BRICS Payment System
Lavrov highlighted that the forthcoming BRICS payment system will encompass trading, investing, and settlement operations. This mechanism is designed to enable member countries to engage in financial transactions independently of the US dollar, thereby strengthening the alliance’s goal of de-dollarization. The minister pointed out that the growing reliance on sanctions by the US and Europe against certain nations has significantly influenced BRICS’ decision to launch this initiative.
“The sanctions imposed by the West have directly contributed to the development of a new payment system within BRICS,” Lavrov stated. He mentioned that even US Treasury Secretary Janet Yellen acknowledged that the sanctions on developing nations have accelerated the trend toward de-dollarization.
Attracting Developing Nations
Lavrov noted that many countries are increasingly interested in the payment systems being developed within BRICS. These systems allow for trading, investing, and executing various economic operations without the risk of reliance on nations that “weaponize” the dollar and euro. He emphasized that the fear of US sanctions will drive developing nations to consider the BRICS payment system as a viable option.
“Everyone understands that anyone may face US or other Western sanctions,” he remarked during a meeting with Egyptian Foreign Minister Badr Abdelatty. This statement underscores the growing urgency among developing nations to explore alternatives to traditional financial systems dominated by Western powers.
The BRICS payment system represents a strategic shift aimed at enhancing financial independence and resilience against external pressures, potentially reshaping the future of global finance.
