BEIJING, Jan 11 Payments in national currencies will expand the solvency of the BRICS countries and increase their economic resilience to uncertainties and external shocks, said Shen Yi, head of the BRICS Research Center of the Development Research Institute of Fudan University.
«»Objectively speaking, the diversified development of the international monetary system and payment systems is in line with the changing trend of distribution forces and the general direction of development of the global system,» said Shen Yi.
According to him, as for Russia, in the context of Western economic and financial sanctions, it has always wanted to create some new, more flexible and reasonable structure in the field of currency and finance, regardless of whether it is exploring the possibility of creating multilateral financial and economic structures Based on the BRICS agreement or the creation of a new reserve currency, “getting rid of the hegemony of the dollar is quite reasonable and necessary.”
«From a practical point of view, the BRICS member states are actively studying and trying to eliminate payments in dollars in bilateral trade. For example, payments in national currencies have already been accepted between China and Russia, as well as Russia and India,» he noted expert.
He added that “the implementation of settlements in national currencies will expand the solvency of the BRICS countries and increase their economic resilience to uncertainties and external shocks, providing effective support for strengthening business cooperation in the financial sector among BRICS members.”
The analyst pointed out that since 2019, the BRICS countries have begun to create a unified BRICS Pay system as part of the development of a common platform for retail payments and transfers between member countries of the association, reducing dependence on SWIFT, Visa and Mastercard.
«The BRICS Pay payment system is constantly developing and improving. At the moment, the main limiting factor affecting the process of building the system is the question of how to achieve effective interconnection of the financial infrastructure, while avoiding unnecessary disputes and contradictions,» Shen noted I.
He added that the development of cross-border e-commerce in the BRICS countries can give a powerful impetus to the construction and implementation of connected payment systems.