During the recent BRICS summit, President Vladimir Putin advocated for the establishment of an alternative international payment system, igniting conversations about de-dollarization. However, unfounded rumors quickly emerged on social media, alleging that Putin had introduced a new BRICS currency. This assertion has been categorically denied.
According to a report by The Guardian, the summit primarily aimed to discuss strategies for reducing dependence on the US dollar, particularly considering its utilization as a political weapon.
The misinformation circulating on social media claimed that Putin had officially launched a currency intended to replace the dollar during the summit.
Held in Kazan, Russia, Putin stressed the necessity of distancing from the US dollar, characterizing it as a tool of coercion. Notably, approximately 95% of trade between Russia and China is now conducted in rubles and yuan, underscoring a significant shift in their bilateral trade dynamics away from the dollar.
Putin’s statements coincided with Russia’s efforts to develop a settlement and payment infrastructure that circumvents the SWIFT system, aiming to diminish reliance on Western financial frameworks.
While the pursuit of a de-dollarized global economy has attracted attention, it has also elicited caution from some BRICS members. Countries like Brazil and India express concerns about the bloc becoming excessively aligned with China or adopting an anti-Western stance.
Despite discussions about financial sovereignty, the summit’s final communique indicated that little tangible progress was achieved regarding the establishment of an alternative international payment system.
This summit marked a significant occasion for Putin, offering him a prominent international platform since Russia’s invasion of Ukraine in February 2022. The event included participation from nine BRICS nations, featuring leaders such as Indian Prime Minister Narendra Modi, Chinese Premier Li Qiang, and South African President Cyril Ramaphosa.
The concluding communique is anticipated to address global conflicts, including a mention of a joint Brazil-China peace initiative for Ukraine. However, Ukrainian President Volodymyr Zelenskyy dismissed this proposal, labeling it a “half-hearted settlement plan.”
Attention also turned to the future of BRICS, now in its 16th year, as increasing interest from countries in the Global South to join the organization emerged. Discussions arose regarding the potential expansion of the bloc.
Brazil, along with India, expressed concerns about the group morphing into a solely anti-Western alliance. Ultimately, a varied group of new members was accepted, including nations such as Cuba, Bolivia, and Turkey, raising questions about the organization’s future trajectory.
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