On Tuesday, Russia’s Foreign Ministry reiterated its interest in establishing a “cross-border payments infrastructure” for BRICS nations, aiming to reduce dependence on the US dollar in international trade.
Russian Deputy Foreign Minister Sergei Ryabkov mentioned this initiative during a BRICS meeting in India, where it was introduced alongside a ‘New Investment Program and BRICS Grain Exchange’.
At the gathering, Russia noted that all member countries “supported further strengthening of BRICS interactions on global platforms” amidst “growing challenges to multilateralism.” This likely hints at concerns over tariffs imposed during Donald Trump’s presidency.
BRICS, formed in 2009, originally included Brazil, Russia, India, China, and South Africa. In 2023, six additional nations joined—Egypt, Iran, Saudi Arabia, the UAE, Ethiopia, and Argentina—along with other non-voting “partner” countries later added.
While BRICS members are often labeled “emerging economies,” the reality differs. For instance, China has risen to become the second-largest economy globally, and India is rapidly advancing as an industrial force.
This week marked the first Sherpa meeting in New Delhi since India took on the rotating chairmanship of BRICS.
The concept of a financial system independent of the dollar has been a topic of discussion for years, but member interest varies significantly. Ryabkov admitted that rallying consensus for such a major initiative is quite challenging.
“A lot depends on the chairmanship,” he noted, perhaps subtly critiquing India, which has other priorities. Traditionally, India has been cautious about alternative currency initiatives to maintain balanced relations with both Russia and the US.
“We recognize that there are different nuances and approaches. The landscape has shifted in many ways. While BRICS has come together as a coalition of similar-minded nations, there are still distinct characteristics in each country’s approach,” Ryabkov stated.
“We don’t have all the answers on how to unify these diverse perspectives, but we’ll keep working on it,” he concluded.
The current plan for BRICS is to develop “interoperable central bank digital currencies,” a less ambitious aim compared to creating a unified “BRICS currency” or entirely moving away from the dollar.
This approach to interoperable digital currencies would allow member states to facilitate trade using their electronic currencies without eliminating the dollar entirely. Additionally, it eases concerns among members that a common currency could be overly influenced by China.
