During the recent BRICS summit held in Kazan, Russia, President Vladimir Putin advocated for the establishment of an alternative international payment system, emphasizing the need to reduce reliance on the US dollar, which he criticized as a “weapon” used in global politics. However, misleading claims emerged on social media suggesting that Putin had announced the launch of a new BRICS currency, which were proven to be unfounded.
As reported by The Guardian, the summit primarily concentrated on strategies to diminish dependence on the US dollar, especially given its role as a political tool in international relations. The viral misinformation incorrectly stated that Putin had introduced a currency to replace the dollar during the summit.
In his address, Putin highlighted that approximately 95% of trade between Russia and China is already conducted using the ruble and yuan, showcasing a significant shift in their bilateral trade practices away from the dollar. He further stressed Russia’s ambitions to develop a settlement and payment system independent of the SWIFT network, aiming to bolster financial autonomy from Western influences.
Despite the increasing emphasis on de-dollarization, concerns were raised by some BRICS nations, particularly Brazil and India, about the potential for the group to adopt a stance that is overly supportive of China or hostile to the West.
The summit did not yield substantial progress towards implementing an alternative international payment system, as indicated in the final communique. This gathering marked Putin’s most significant international engagement since Russia’s invasion of Ukraine in February 2022 and included notable attendees such as Indian Prime Minister Narendra Modi, Chinese Premier Li Qiang, and South African President Cyril Ramaphosa.
The closing statement of the summit is anticipated to address various global conflicts, including a brief mention of a Brazil-China peace initiative concerning Ukraine, which Ukrainian President Volodymyr Zelenskyy has dismissed as a “half-hearted settlement plan.”
Additionally, the event highlighted the evolving nature of BRICS, now in its 16th year, as interest from countries in the Global South to join the organization continues to grow. This has sparked discussions on the potential expansion of BRICS, with Brazil and India expressing apprehension about the bloc transforming into an exclusively anti-Western coalition. Despite these concerns, a diverse array of new members, including Cuba, Bolivia, and NATO member Turkey, was approved, prompting questions about the future trajectory of BRICS.
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