Recent rumors regarding the launch of a new BRICS currency by Russian President Vladimir Putin have been proven false. During the BRICS summit held in Kazan, Putin advocated for an alternative international payment system, emphasizing the need to move away from the US dollar, which he described as being wielded as a “weapon” in global politics.
Despite speculation circulating on social media that Putin had announced a new currency to replace the dollar, reports, including one from The Guardian, clarify that the summit’s focus was primarily on strategies to decrease reliance on the US dollar, especially given its use in political contexts.
Putin highlighted that nearly 95% of trade between Russia and China is already conducted in rubles and yuan, illustrating a clear shift in bilateral trade practices. His remarks came as part of Russia’s efforts to establish a settlement and payment infrastructure that would circumvent the SWIFT system, thereby reducing dependence on Western financial mechanisms.
While the desire to de-dollarize the global economy has gained traction, it has raised concerns among some BRICS nations. Brazil and India, in particular, are cautious about the bloc becoming overly aligned with China or adopting an anti-Western stance.
Despite the discussions on financial independence, the summit’s final communique revealed limited tangible progress toward establishing a new international payment system. This summit marked Putin’s most significant international platform since Russia’s invasion of Ukraine in February 2022, attended by nine BRICS leaders, including Indian Prime Minister Narendra Modi, Chinese Premier Li Qiang, and South African President Cyril Ramaphosa.
The communique is anticipated to address global conflicts, notably referencing a joint Brazil-China peace plan for Ukraine, which has been dismissed by Ukrainian President Volodymyr Zelenskyy as a “half-hearted settlement plan.”
As BRICS celebrates its 16th year, the future of the organization is in focus, with increasing interest from Global South countries seeking membership. Discussions have emerged regarding potential expansion and concerns from Brazil and India about BRICS transforming into a strictly anti-Western coalition. Despite these apprehensions, a diverse array of new members, including Cuba, Bolivia, and NATO member Turkey, have been approved, prompting further debate about the bloc’s future direction.
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