A senior Russian official has confirmed that plans to develop a BRICS payment system are actively advancing, signaling a significant step toward reducing reliance on the U.S. dollar.
Russian Deputy Foreign Minister Sergey Ryabkov emphasized that the initiative is not merely theoretical but a concrete and actionable plan. In an interview with the Tass Analytical Center on Tuesday, Ryabkov outlined Russia’s objectives during its BRICS chairmanship, underscoring that the proposed payment system is a practical alternative designed to address the growing need for diversified financial mechanisms.
Speaking on Russia’s collaboration with countries like Brazil and Iran, Ryabkov expressed confidence that other BRICS nations would align with this initiative. “Certainly. Moreover, others will join as well. This plan is not intended to completely replace the dollar in all settlements but to create an additional circuit for transactions. It is particularly critical in scenarios where the traditional dollar channel is failing due to external factors beyond BRICS’ control,” he explained. Rather than eliminating the dollar, the goal is to establish a parallel financial mechanism to complement the existing global system.
The expanded BRICS group, now comprising Brazil, Russia, India, China, South Africa, and six newly inducted members—Saudi Arabia, Iran, the UAE, Egypt, Ethiopia, and Argentina—has been intensifying efforts to decrease dependence on the U.S. dollar in international trade and investment. This initiative is part of a broader “de-dollarization” movement, driven by geopolitical tensions and the desire to shield economies from the risks of dollar fluctuations. Key developments include trade settlements in local currencies, the creation of alternative payment systems, and discussions about a potential BRICS currency to facilitate intra-bloc transactions.
However, these ambitions face challenges, including the diverse economic structures of member nations, conflicting policy priorities, and the need to ensure currency stability and liquidity. Ryabkov acknowledged these complexities and highlighted the additional infrastructure required to support the system. This includes clearing mechanisms, transaction insurance frameworks, and assurances for the movement of goods and cargo. “We are actively working on these aspects—insurance systems for transactions and cargo movements that would remain unaffected by external pressures,” he noted.
Ryabkov concluded by stating that these combined efforts represent significant progress toward establishing a robust alternative to the existing financial framework, marking a crucial milestone for BRICS in reshaping the global economic landscape.
