National currencies liberate BRICS from Western hassle
(MENAFN) Russian Finance Minister Anton Siluanov emphasized that using national currencies for trade offers BRICS nations a dependable alternative to Western financial systems, which can freeze transactions unexpectedly. This shift gained urgency after Western sanctions froze Russia’s dollar and euro reserves following the Ukraine conflict escalation in 2022.
Speaking at the BRICS summit in Rio de Janeiro, Siluanov highlighted Moscow’s readiness to develop mechanisms that protect the New Development Bank (NDB)—created by BRICS in 2015—from risks associated with Western sanctions. These mechanisms would avoid reliance on Western financial infrastructure or currencies from sanctioning countries.
Siluanov stressed that settling trade in national currencies has proven to be reliable and independent of Western-controlled payment systems, which have shown they can halt payments at any time. Transactions now proceed through trusted banks with direct correspondent relationships, bypassing Western-controlled platforms. Expanding these direct links is crucial to sustaining trade and ensuring seamless financial operations.
Since Russian banks were cut off from SWIFT in 2022, Russia and its partners have intensified efforts to use alternative messaging systems and conduct trade in their own currencies. For instance, trade with China reached $245 billion last year, with nearly all payments made in rubles and yuan, and this figure is expected to grow.
BRICS, founded in 2006 by Brazil, Russia, India, and China—with South Africa joining in 2010—has recently welcomed new members including Egypt, Ethiopia, the UAE, and Indonesia. In response to rising interest from over 30 countries, the group introduced a ‘partner country’ status at last year’s Kazan summit.
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