BRICS Review Global Payments System – Bypassing US Dollar And Circumventing SWIFT

There are massive moves being made in the financial world these days. Check out the latest reports about what has been going on with BRICS below.

It has been reported that the BRICS economic alliance is considering the development of a global payments system that could bypass the usual SWIFT banking industry standard.

According to a recent report by TASS, a state-funded Russian news organization, the alliance’s finance ministers are currently assessing the feasibility of a unified payment network.

This network will be formally discussed at the upcoming BRICS meeting next year. The aim of this network is to enhance independent efforts towards establishing payment messaging systems.

Russian Finance Minister Anton Siluanov stated that the alliance is working towards introducing their financial messaging system, the SPFS.

Additionally, the Chinese and other BRICS countries are either creating their own systems or already have their systems. Thus, this matter is set to be discussed by financial agencies and money authorities of BRICS member states.

The recent news reveals that the BRICS group, consisting of Brazil, Russia, India, China, and South Africa, has decided to expand by including Saudi Arabia, Iran, Ethiopia, Egypt, Argentina, and the UAE.

When questioned about BRICS’s future potential, Siluanov stated that the group’s primary focus is on breaking away from Western ties and establishing stronger connections with Southeastern countries, a trend that is expected to continue in the future.

SWIFT is an integral part of the global banking system, allowing banks to securely exchange money-related messages. In March 2022, the organization, which is primarily owned by banks, banned several Russian banks at the request of the European Union.

In August of this year, South Africa’s finance minister, Enoch Godongwana, announced that a BRICS-based payments system would aim to enhance local currency trade rather than relying on the US dollar.

However, he acknowledged that its implementation would be challenging and that the system would not be created to directly challenge SWIFT.