In a recent BRICS summit, Russian President Vladimir Putin advocated for the development of an alternative international payment system to decrease reliance on the US dollar, which he criticized as a “weapon” used in global politics. However, amidst these discussions, misinformation circulated on social media suggesting that Putin had announced a new BRICS currency, a claim that has since been debunked.
According to a report from The Guardian, the primary focus of the summit, held in Kazan, Russia, was on strategies to diminish dependency on the US dollar, especially given its utilization as a political instrument. The misleading claims falsely indicated that Putin had introduced a currency intended to replace the dollar.
Putin highlighted the significant shift in trade practices between Russia and China, noting that nearly 95% of their transactions are now conducted using the ruble and yuan. This reflects a broader trend toward reducing dollar-based trade.
In addition to these remarks, Putin emphasized Russia’s ongoing efforts to establish a settlement and payment infrastructure capable of bypassing the SWIFT system, furthering the initiative to lessen reliance on Western financial institutions.
Despite the growing conversation around de-dollarization, some BRICS members, including Brazil and India, expressed concerns about the alliance potentially becoming overly aligned with Chinese interests or antagonistic toward the West.
The summit’s final communiqué revealed a lack of significant advancements in the creation of a new international payment system, even as discussions on financial independence gained traction. This summit marked a critical moment for Putin, providing him with his most significant international platform since Russia’s invasion of Ukraine in February 2022. It was attended by leaders from nine BRICS nations, including Indian Prime Minister Narendra Modi, Chinese Premier Li Qiang, and South African President Cyril Ramaphosa.
The concluding statement of the summit is anticipated to address various global conflicts, including a brief mention of a Brazil-China peace initiative for Ukraine. However, Ukrainian President Volodymyr Zelenskyy has dismissed this plan as a “half-hearted settlement.”
As BRICS enters its 16th year, the future of the bloc has come under scrutiny, particularly as numerous countries from the Global South express interest in joining. Concerns voiced by Brazil and India regarding the potential transformation of BRICS into an anti-Western coalition were notable. In response to these discussions, a diverse group of new members, including Cuba, Bolivia, and Turkey, a NATO member, was approved, prompting debates about the organization’s future trajectory.
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