BRICS leaders to discuss sustainable payment mechanism: Russian Foreign Ministry
BRICS nations will consider at their summit next month is the establishment of long-term payment systems for cross-border commerce, the Russian Foreign Ministry said. «Given the current international situation, this issue will be addressed during the upcoming meeting of the bloc's leaders,» the ministry said on Friday, referring to the summit in Johannesburg, South Africa, on August 22-24, RT reported. The use of national currencies in cross-border commerce is hindered, according to the Russian Foreign Ministry, by things like their restricted convertibility and higher volatility than the US dollar.
The government also admitted that it would be a «delicate» process to possibly launch a new BRICS common currency. RT is a Russia-based global TV news network providing news, current affairs and documentaries on social, economic and political issues. The BRICS nations have been seeking to shift further from the US dollar in mutual trade, with the de-dollarization trend gaining momentum following sanctions that effectively cut Russia off from Western financial mechanisms.
Numerous developing nations — including Russia's fellow BRICS members China, India, Brazil and South Africa — have started to move toward alternative currencies in trade, RT reported. South Africa will host the 15th BRICS Summit at the Sandton Convention Centre in Johannesburg's Sandton from August 22-24. South Africa became Chair of BRICS on January 1 this year under the theme: «BRICS and Africa: Partnership for Mutually Accelerated Growth, Sustainable Development and Inclusive Multilateralism».
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