BRICS Considers Payments in National Currencies
The BRICS alliance is moving all its cards to place national currencies ahead of the US dollar for global trade. Many ideas are being shared by member nations on how to embolden national currencies against the US dollar. The new BRICS member Iran has provided the alliance with a new option to integrate national currencies in mutual financial settlements. Russia is impressed with the idea while the other members are yet to provide their answer.
Also Read: BRICS Officially Announces Financial System Similar to SWIFT
The option to use national currencies among member nations will most likely be discussed in the upcoming BRICS summit. Iran will take the lead in convincing other members to create a payment mechanism to make national currencies the main payment option for cross-border transactions.
Iran Looking To Make BRICS Consider National Currencies For Trade
The payment infrastructure that Iran plans includes clearance systems and messaging options similar to the Western-based SWIFT mechanism. The integration of national currencies will embolden the BRICS alliance and advance its quest for de-dollarization. Therefore, the upcoming summit in October will decide the next course of the bloc that can put the US dollar in jeopardy.
Also Read: India Wants New BRICS Payment System To Bypass US Dollar
“Various options related to integrating financial markets of the BRICS members, such as payments in national currencies and new mechanisms of mutual financial settlements, including those suggested by Iran are now being considered,” said Russian Deputy Foreign Minister Andrey Rudenko.
Read here to know how many sectors in the US will be affected if BRICS ditches the dollar for trade. The US dollar will lose out in the supply and demand dynamics making national currencies thrive in the global markets.
Also Read: BRICS: Top Analyst Predicts U.S. Dollar Collapse
The 16th summit is held in October in the Kazan region of Russia and could take bolder decisions. These decisions could make the US and other Western allies uncomfortable as they plan to eat their share of global dominance.