BRICS leaders to discuss sustainable payment mechanism: Russian Foreign Ministry

Business Sunday 23/July/2023 08:41 AM
BRICS leaders to discuss sustainable payment mechanism: Russian Foreign Ministry

Moscow : One of the crucial topics the BRICS nations will consider at their summit next month is the establishment of long-term payment systems for cross-border commerce, the Russian Foreign Ministry said.

“Given the current international situation, this issue will be addressed during the upcoming meeting of the bloc's leaders,” the ministry said on Friday, referring to the summit in Johannesburg, South Africa, on August 22-24, RT reported.

The use of national currencies in cross-border commerce is hindered, according to the Russian Foreign Ministry, by things like their restricted convertibility and higher volatility than the US dollar. The government also admitted that it would be a "delicate" process to possibly launch a new BRICS common currency.

RT is a Russia-based global TV news network providing news, current affairs and documentaries on social, economic and political issues.

The BRICS nations have been seeking to shift further from the US dollar in mutual trade, with the de-dollarization trend gaining momentum following sanctions that effectively cut Russia off from Western financial mechanisms. Numerous developing nations - including Russia's fellow BRICS members China, India, Brazil and South Africa - have begun to move toward alternative currencies in trade, RT reported.

South Africa will host the 15th BRICS Summit at the Sandton Convention Center in Johannesburg's Sandton from August 22-24.

South Africa became Chair of BRICS on January 1 this year under the theme: “BRICS and Africa: Partnership for Mutually Accelerated Growth, Sustainable Development and Inclusive Multilateralism”.

Earlier, South Africa informed that Russian President Vladimir Putin will not travel to the country for the summit. Later, Kremlin informed that Putin would virtually participate in the summit.

“The theme informs the Chair's five priorities for 2023 - Developing a partnership towards an equitable Just Transition; Transforming education and skills development for the future; Unlocking opportunities through the African Continental Free Trade Area; Strengthening post-pandemic socio-economic recovery and the attainment of the 2030 Agenda on Sustainable Development; Strengthening multilateralism, including working towards real reform of global governance institutions and strengthening the meaningful participation of women in peace processes,” according to the official statement.

The first BRICS Summit was held in Russia in 2009. After the formation of BRICS, South Africa was invited to join the group in 2010.

The 14th BRICS Summit was held virtually in June 2022 under the theme: Foster High-quality BRICS Partnership, Usher in a New Era for Global Development”.