Recent discussions at the BRICS summit have fueled speculation regarding a new currency to rival the US dollar, a notion that has since been debunked. While Russian President Vladimir Putin emphasized the necessity of developing alternative payment systems, rumors of an official BRICS currency launch circulated widely on social media, misleading the public.
According to The Guardian, the central theme of the summit held in Kazan, Russia, revolved around reducing dependency on the US dollar, particularly in light of its weaponization in geopolitical conflicts. Social media narratives falsely claimed that Putin had introduced a new currency designed to replace the dollar during the summit.
Putin, addressing leaders from BRICS nations, articulated the urgent need to decrease reliance on the US dollar, labeling it a “weapon.” He highlighted that approximately 95% of trade between Russia and China now occurs in rubles and yuan, signifying a substantial shift towards bilateral trade that bypasses the dollar.
Moreover, Russia is working to establish a settlement and payment framework to circumvent the SWIFT system, further emphasizing its goal of diminishing reliance on Western financial institutions.
Despite the focus on de-dollarization, the summit revealed underlying concerns among BRICS members. Countries such as Brazil and India expressed reservations about the bloc veering too far into pro-China or anti-Western sentiments.
The summit did not yield significant advancements towards creating an alternative international payment system, as indicated by the final communique. The gathering marked Putin’s most significant international appearance since Russia’s invasion of Ukraine in February 2022, with prominent figures like Indian Prime Minister Narendra Modi, Chinese Premier Li Qiang, and South African President Cyril Ramaphosa in attendance.
The final statement from the summit is anticipated to address global conflicts, including a single mention of a joint Brazil-China peace initiative 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 question. With increasing interest from Global South nations seeking membership, discussions arose regarding potential expansion. Concerns lingered, particularly from Brazil and India, about the possibility of BRICS transforming into an anti-Western bloc. Ultimately, a diverse set of new members, including Cuba, Bolivia, and Turkey—a NATO member—was approved, prompting further inquiries into the future trajectory of the group.
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