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BRICS nations advance dedollarisation as Brazil takes the lead

BRICS nations advance dedollarisation as Brazil takes the lead

GrafaGrafa2024/10/28 20:37
By:Mahathir Bayena

Russia’s push to reduce the U.S. dollar’s dominance within the BRICS alliance has reached key milestones, with formal agreements and alternative financial systems now in place. 

At the recent BRICS summit in Kazan, Russian Deputy Foreign Minister Sergey Ryabkov underscored the progress made during Russia’s presidency, emphasising the shift towards a more independent financial framework. 

"Weaning off the dollar through mutual settlement clearing schemes is a well-tested approach that needs further development and a multilateral character," Ryabkov remarked. 

As Russia transitions the leadership role to Brazil, Ryabkov stressed that the initiative has moved from mere rhetoric to actionable steps. 

"We are handing this topic over to the Brazilians, fully convinced that the initiative has been made; these are not just words but the result of work formalized in agreements," he stated. 

According to Ryabkov, the implementation of practical measures such as BRICS Bridge, BRICS Clear, and BRICS Reinsurance marks a significant shift away from reliance on Western-dominated financial mechanisms like SWIFT. 

He described these initiatives as "functioning systems to ensure mutual settlements that bypass the dominant SWIFT system, which has been effectively placed on a monopoly pedestal by the West." 

Ryabkov also highlighted the necessity of integrating and expanding these systems to create a resilient network that shields BRICS nations from external pressures. 

He advocated for exploring new solutions independent of Western financial infrastructure, particularly in logistics and insurance sectors. 

“There are already functioning systems to ensure mutual settlements that bypass the dominant SWIFT system,” he said, emphasising the importance of continued development and integration. 

Looking ahead, Ryabkov stressed that increasing the use of national currencies within BRICS is a “direct, clear, and effective path” to achieving dedollarisation. 

He also pointed to currency digitalisation as a key area for future exploration, urging BRICS nations to move towards practical steps in this domain. 

"We must move on to practical matters in some aspects. We are accumulating experience, and it is very positive," he concluded, indicating the group’s ambition to establish more autonomous financial systems and support economic sovereignty among its member states.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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