Reduce Dependence On US Dollars, BRICS Will Discuss Alternative Payment Systems At Next Summit

BRICS will discuss an alternative payment system at the upcoming summit (Photo; Doc. Foxnews)

JAKARTA - BRICS countries (Brazil, Russia, India, China, and South Africa) are preparing for major steps in their international payment systems. At the Summit which will take place in Kazan, Russia, on October 22-24, reports on the development of alternative payment platforms will be discussed in depth. The main goal of this initiative is to reduce dependence on traditional financial systems dominated by the US dollar.

This report is a follow-up to a proposal submitted by Brazilian President Luiz Inighcio Lula da Silva at the BRICS summit in August 2023. The proposal aims to provide more independent payment options for BRICS countries, reducing their dependence on the Western-based payment system, such as SWIFT, which is dominated by the US dollar.

According to Russian Foreign Minister Sergey Lavrov, finance ministers and central banks of BRICS member countries are working hard to prepare for this report. "We have to receive reports from finance ministers and central banks of BRICS member countries on how to create alternative payment platforms," Lavrov was quoted as saying by TASS.

Quoted from News Bitcoin, Lavrov also stressed that Russia has increased the use of national currencies in its international trade, particularly with China and India. More than 90% of Russia's trade with China is now being carried out in local currencies between the two countries, while in trading with India, the figure is up to 60%. The move is considered as part of a larger global trend towards dedolarization, where countries are reducing the use of the US dollar in their international trade.

Lavrov also highlighted that the dominance of the US dollar is starting to decrease due to the United States' economic policy, which continues to print money and apply economic pressure to other countries. "We are starting to shift to this form of interaction with most countries. This era is nearing its end," Lavrov added.

The BRICS move is part of an effort to create a fairer and more balanced global financial ecosystem, where developing countries have more options in international payment systems. In addition, by using local currencies in trading, BRICS hopes to protect their economy from the risk of dollar fluctuations and the impact of US economic policy.