As BRICS Summit Kicks Off, Calls Grow for Parallel Payment System to Counter US Hegemony — New International Reserve Currency Based on a Basket of Currencies
- As BRICS Summit Kicks Off, Calls Grow for Parallel Payment System to Counter US Hegemony
by GT staff reporters, https://www.globaltimes.cn/index.html , 22 June 2022
Emerging markets need parallel system to counter West’s dominance: Russian banker
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In a keynote speech at the opening ceremony of the BRICS Business Forum on Wednesday, Chinese President Xi Jinping called on the BRICS business community to expand cooperation on cross-border e-commerce, logistics and local currencies.
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As the 14th summit of the BRICS, a group of major emerging market economies comprising Brazil, Russia, India, China and South Africa, kicked off on Wednesday, there are growing calls from bankers and economists in BRICS countries, especially Russia, for the bloc to expand national currency settlements and lending to counter the US’ weaponization of the dollar.
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Russian President Vladimir Putin said in a welcome address to BRICS Business Forum participants on Wednesday that the issue of creating an international reserve currency based on a basket of currencies is under review, Russian news agency TASS reported.
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“The BRICS and other interested nations need to talk about setting up their own independent global financial system – whether it would be based on the Chinese currency or they will agree on something different. They need to debate this,” Sergey Storchak, chief banker of Russian bank VEB.RF, told the Global Times in a video interview on Tuesday.
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Storchak said that he hopes during China’s presidency of this year’s BRICS summit, member countries have open discussions on what really needs to be done. VEB.RF is a major financial development institution in Russia that has been excluded from the SWIFT system.
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There has been an ongoing discussion within the BRICS to accelerate payments in national currencies for years, and the need is becoming particularly urgent after the US removed some Russian banks from the SWIFT global interbank payments system and forced other economies to pay for its economic problems with sizeable financial tightening.
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