The BRICS economic bloc, comprising countries including China, Russia, and India, is working to establish its own international payment system, according to Russian Finance Minister Anton Siluanov. The move comes as a response to the Western-dominated system, which the bloc views as too politicized and vulnerable to pressure from the United States.
Siluanov cited the heavy sanctions imposed on Russia following its invasion of Ukraine in 2022 as a key factor driving the decision to create an alternative system. He emphasized that the BRICS bloc is committed to economic growth and boosting citizens’ incomes, free from political pressures and restrictions.
Established as a counter to Western organizations like the Group of Seven, BRICS has expanded to include five new members in January 2024: Egypt, Iran, Saudi Arabia, the United Arab Emirates, and Ethiopia. Argentina was set to join but withdrew after the election of libertarian President Javier Milei. Thirteen other nations are closely collaborating with BRICS and are considering membership.
The BRICS bloc has long sought to facilitate trade between its members without relying on the Western-dominated global financial system or the US dollar. This effort is driven by political considerations, as many BRICS nations have poor human rights records and resent the ability of the Western world to impose sanctions.
The bloc has also collectively exempted itself from making significant climate change sacrifices, emitting more greenhouse gases than the rest of the world combined. The climate change movement has been relatively lenient with non-Western nations, but this may change, leaving BRICS members vulnerable to climate sanctions.
Siluanov envisions a system where the national currencies of BRICS members, along with digital currencies, form the foundation of an alternative to SWIFT. He believes that developing nations in the “Global South” are interested in joining the BRICS system when it is established.
The minister also emphasized the need for BRICS to develop alternatives to the International Monetary Fund (IMF) and World Bank, which he claims are not functioning in the interests of BRICS countries. Siluanov suggested creating new institutions, similar to the Bretton Woods framework, but within the BRICS community.
The BRICS Development Bank, established in 2015, is the only notable progress made towards creating an alternative financial system. However, the bank’s resources have been stretched thin by the expanding membership, and it has come under criticism for funding environmentally insensitive projects.
