BRICS Sherpa Sergey Ryabkov confirmed to reporters that the bloc will not scrap the formation of a new payment system. Speaking to reporters at the Sherpa meeting, the diplomat doubled down saying that there’s no turning back on launching the new BRICS payment system. The goal of the new system is to sideline the US dollar and settle cross-border transactions in a basket of local currencies.
Also Read: BRICS Determined to Trade In Local Currencies, Not US Dollar
For the uninitiated, BRICS is working on the formation of an independent payment system that will not incorporate the US dollar into its mechanism. The mechanism will include local currencies of the bloc and keep the US dollar away from all transactions. Read here to know how many sectors in the US will be affected if BRICS ditches the dollar for trade.
“The glass is always half-full; it is never half-empty,” said Ryabkov when answering about the independent payment system within BRICS.
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“We can measure how full the glass is in different ways but this ultimately depends on who is holding this glass in their hands. Therefore, we’ve made significant strides today. How much time it will take to fill the framework we’ve established with tangible actions depends on us. On BRICS and the global majority,” the diplomat said to reporters at a press conference.
Why is BRICS Creating a New Payment System?
Source: AFP
The BRICS bloc is creating a new payment system to safeguard the economies of developing countries from US sanctions. The goal is to protect themselves economically without being pinned down by the US and the West. The diplomat called the US and the West “hostile states” who want to harm the prospects of developing countries.
Also Read: BRICS Moving Away From the De-Dollarization Agenda
The diplomat called the upcoming BRICS payment system a “critical milestone” for the bloc and “a point of no return.” He added that “we will do everything in our power to ensure success.”
