Jaipur: BRICS, the coalition of major emerging and developing economies, is set to introduce its own cross-border payment system known as BRICS Pay, marking a significant move towards "de-dollarization" in international trade and financial transactions.
According to Deutsche Welle, the BRICS finance ministers and central bank officials convened in Jaipur, India, in August to further the development of this project. BRICS Pay is expected to become partly operational by September, offering a new framework for conducting transactions without relying on the US dollar as an intermediary.
Currently, international payments, such as those between Nigeria and the Democratic Republic of Congo, typically utilize the Belgium-based SWIFT system. While SWIFT connects over 11,000 financial institutions globally and functions effectively, critics argue that it can be used as a geopolitical tool. In conflicts, entire nations can be excluded from this essential network, which serves as a leverage point for Western sanctions.
BRICS Pay aims to mitigate this issue by connecting national payment systems, facilitating trade directly between BRICS nations without the involvement of the dollar. This initiative underscores the bloc's commitment to enhancing financial autonomy and reducing dependency on Western financial infrastructures.