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14 Nov, 2019 12:19

Phasing out the dollar: BRICS countries setting up own payment network to cut dependence on Western financial system

Phasing out the dollar: BRICS countries setting up own payment network to cut dependence on Western financial system

In past five years, Russia has almost halved its foreign trade payments in US currency, from 92 to 50 percent, said the CEO of Russian Direct Investment Fund (RDIF) and member of the BRICS Business Council Kirill Dmitriev.

Talking to RT on the sidelines of the BRICS Summit in Brazil, Dmitriev said that payments in ruble increased from 3 to 14 percent over the period.

The five major emerging economies – Brazil, Russia, India, China, and South Africa – are currently developing a joint new payment system.

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“An efficient BRICS payment system can encourage payments in national currencies and ensure sustainable payments and investments among our countries, which make up over 20 percent of the global inflow of foreign direct investment,” Dmitriev said.

He explained that developing the national segments of payment systems and their sustainable integration are the “key drivers of the economic partnership among the BRICS countries, given the increasing non-market risks of the global payment infrastructure.”

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The potential use of a single cryptocurrency for payments among BRICS member-countries is also expected to be discussed during the forum. Such payments will be conducted via the BRICS payment system, Dmitriev said, adding “The joint funds established with RDIF’s assistance for investments made in national currencies and technology development can serve as the foundation for that.”

RDIF is the Chair of the BRICS Business Council’s Financial Services Working Group.

For more stories on economy & finance visit RT's business section