Russia proposes independent payment system for BRICS members -

Moscow: It has become difficult for Russia to carry on with the trade with its friendly countries, given the harsh sanctions imposed by the United States and the western countries. The New Development Bank (NDB), started by the BRICS, has stopped Russian transactions. NDB clarified that this decision had to be taken given the uncertainties. In this scenario, Russia has appealed that a new payment system should be started with the NDB for the BRICS Members Brazil, Russia, India, China and South Africa. Russia has suggested that the currencies of individual countries should be used in the system.

Russian Finance Minister Anton Siluanov said that the US sanctions affect Russia and the entire global financial scene. The US sanctions against Russia have rocked the foundation of the USD based global economy. By saying that the United States has created this crisis, but the BRICS countries can tide over the crisis, Russian Finance Minister Anton Siluanov suggested establishing an independent payment system.

Siluanov presented four issues while proposing this. Siluanov said that the use of national currency for import and export between BRICS members, coordination between the payment system and the cards, financial messaging system, and an independent credit rating system for the BRICS countries are necessary. Meanwhile, the Russian leaders who visited India a few days ago have discussed the issue with the Indian leadership. But the Indian position on this has still not been clarified. But there are indications that the United States has taken serious cognisance of this.

The United States has warned that if India omitted the USD and transacted with Russia in Ruble-INR, it would have serious consequences. The United States is consistently threatening that this could invite sanctions against India. But the Reserve Bank of India announced that India had not taken any such decision.

Indian Foreign Minister and Finance Minister will be holding Two-Plus-Two talks with their US counterparts. The Russian Foreign Minister has increased the concerns for the United States by proposing this just two days before the talks. BRICS countries have a 43% share of the global GDP. The United States and Europe have only a 36% share of the global GDP. Therefore, it is argued that the BRICS members can easily challenge the economic influence of the western countries. BRICS had been formed with the sole objective of challenging the economic impact of the westerners. Therefore, the proposal made by Russia to the BRICS members is bound to give sleepless nights to western countries, including the United States.

The United States has imposed stringent sanctions against Russia for using USD as a weapon. The International Monetary Fund has warned that this will reduce the influence of the USD as the international currency. Whereas some analysts in the United States have warned that Russia and China will join hands to open an economic front against the United States. Analysts are making crushing criticism that this has threatened the value of the USD. To impose sanctions against Russia, the Biden Administration has spelt doom for itself. This increases the importance of the proposal given by Russia to the BRICS members.