Ukraine-related Western sanctions are pushing BRICS countries into closer economic cooperation at an accelerated pace, Russian Finance Minister Anton Siluanov said on Saturday during the first meeting of finance ministers and central bank governors of the BRICS countries, chaired by China.
According to the finance minister, the “current crisis is man-made,” and the BRICS member states – Russia, Brazil, India, China, and South Africa – “have all the necessary tools to mitigate its consequences for their respective economies and the global economy on a broader scale.”
Siluanov says the current US dollar-based international financial system should be reformed to ensure “independence and continuity of economic processes.”
“The situation in the global economy has deteriorated significantly as a result of the sanctions. Bans on settlements, disruption of production and supply chains, export controls and import bans – all of these restrictions hit the global economy.”
In order to prevent economies from plunging into crisis, BRICS countries are working to reform their financial interaction, for instance, by creating a BRICS-based interbank messaging system, an analogue of SWIFT, which Russia was cut off from last month as part of EU sanctions, and other measures.
“This pushes us to the need to speed up work in the following areas: The use of national currencies for export-import transactions, the integration of payment systems and cards, our own financial messaging system and the creation of an independent BRICS rating agency,” Siluanov said.
The prospect of creating a BRICS-focused rating agency, for instance, is a highly positive idea, analysts say, as major ratings agencies Moody’s, Fitch, and S&P recently removed their Russia ratings due to sanctions pressure, which makes it difficult for Moscow to secure foreign investment.
During their meeting, representatives of the BRICS countries also discussed cooperation through the New Development Bank, investment in infrastructure, and the creation of a BRICS research network. The central banks of the nations agreed to conduct a new test of the BRICS Contingent Reserve Pool mechanism, which allows member states to swap national currencies in times of need.
Anonymous
7 comments:
I believe that, after the push becoming a shove, regarding what is imposed on Russia, the BRICS system will be given new impetus to provide an alternative platform for countries to bypass the SWIFT system in incremental steps.
It may not be immediate, but the tipping point has been crossed. There is unlikely that BRIC countries will not continue to work on the new system, with new urgency, even if Ukraine is settled and Russian sanctions are rolled back. It is too dangerous for the whole world to depend entirely on SWIFT.
As it is, the deals countries are making are now bypassing the US$ and Euro. That in itself is significant and instilling nervousness in the USA. Look at the way they are threatening India, saying India should not undermine the US$ Hegemony. Does that not say anything important?
Most likely world would split into 2 trading/payment systems: USD vs Rouble/Rmb
aka expensive oil/gas vs cheap Eastern oil/gas:
US Top-down Command and Control economy vs Eastern Capitalist economy:
https://www.youtube.com/watch?v=KmCmKwZk8Eg
(English translation needed as it's only in Chinese)
SWIFT will become known as the American Control International Banking System, ACIBS for countries under the American Empire.
The rest of the world would use a new BRICS banking system.
And that BRICS systems will make the sanctioning regime toothless and ineffective altogether, What does this mean for the US$ Hegemony and the USA? And if countries hold their reserves in Yuan, Rubles, gold (kept away from the West) and underground resources, what can the USA do?
Toothless US and NATO (No Action, Talk Only):
https://www.zerohedge.com/geopolitical/china-undercuts-sanctions-russia-where-are-consequences
"They're [China] the invisible hand behind Putin," said Michael Pillsbury, author of The Hundred-Year Marathon.
"They are the ones who are funding the war. Roughly half of Russia's gold and currency reserves are controlled now by the U.S. and by the West, he [Putin] can't get access to them. But the other half the Chinese can provide access to and they've been doing it... The trade and the purchase of long-term energy supplies undercut the sanctions, because it shows Putin he has got somebody in his corner for the next five years or more. There's a number of ways that China's support is just crucial for Putin. I believe the Chinese could stop the war with one phone call to him. It would be like the banker calling you... so far it's not happening... Probably the only way to get ahead is going to be American sanctions on China... the war will go on because the banker is not going to make that call."
The Biden administration, by repeatedly threatening "consequences" and issuing "warnings" to China, "if" it helps Russia undercut sanctions, merely continues to project indecision, weakness and lack of leadership. The constant repetition of these warnings without follow-up actions by the Biden administration will only result in the additional loss of credibility and the further degradation of U.S. deterrence to the detriment of the West.'
Pillsbury is an American supremacist and only preaches American supremacy.
Why didn't he say it only takes a call from the US to Zelensky to end the war? The bankers to the Ukrainians are the Americans.
And he believes it is ok for the Americans to seize Russia's gold and money kept in western banks. He does not think Putin would say return my money or he will send in his nuclear bombs.
This is Americans rule of law, ie their law allows them to seize other countries' gold and money in their safe keeping. It is actually the rule of gangsters.
By 2030, US Dollar Will Absolutely NOT Be the World's Reserve Currency - Jim Rogers
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