The BRICS alliance is looking to undo the dominancy of the US dollar by launching a new payment system. The next decade could see a paradigm shift in the way countries settle cross-border transactions. Global trade could experience revolutionary changes where the US dollar will not be needed to settle payments.
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Russian Foreign Minister Sergey Lavrov confirmed that the BRICS alliance is working on the formation of a new payment system. The upcoming payment mechanism is different and could take the financial markets by storm. Also, the US dollar will have no role in international transactions and the majority of trade deals could be settled in different payment methods.
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New BRICS Payment System Will Be Open To All Countries
Lavrov revealed that the BRICS alliance is working on the formation of a new payment system where all countries can settle trade deals without the US dollar. Transactions can be settled in local currencies and the payment mechanism will not incorporate the US dollar in any form. Read here to know how many sectors in the US will be affected if BRICS ditches the dollar for trade.
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This means that even non-BRICS countries can settle trade deals in the upcoming new payment system. “There are a number of other initiatives currently under consideration within the BRICS format. One of them being a proposal by Brazil to create an alternative payment platform, with work underway on this track. I am confident that countries, even those outside BRICS, will have access to such mechanisms when they are created.”
The Minister also revealed that the new BRICS payment system will not depend on the US and Europe-dominated SWIFT. “There is an opportunity to form payment platforms independent of external influence. One example being the financial messaging system of the Bank of Russia. It is convenient, and it does not depend on any SWIFT network,” he summed it up.
