end the power of the dollar

The summit on October 22-24 in the city of Kazan is presented by Moscow as proof that Western efforts to isolate Russia have failed. He wants other countries to work with him to reform the global financial system and end the dominance of the US dollar.

At the heart of this is the proposal for a new payments system based on a network of commercial banks linked together through the BRICS central banks, according to a document prepared by the Russian Ministry of Finance and its central bank, distributed to journalists before the summit.

The system would use technology blockchain to store and transfer tokens digital currencies backed by national currencies. This, in turn, would allow those currencies to be exchanged easily and securely, circumventing the need for dollar transactions. Russia sees it as a way to solve growing problems in settling commercial paymentseven with allied countries like China, where local banks fear being affected by secondary sanctions from the United States.

Yaroslav Lissovolik, founder of analysis group BRICS+ Analytics, said creating such a system was technically feasible, but would take time. “Following the significant expansion of BRICS membership last year, gaining consensus is arguably more difficult,” he said.

The Russian document accuses existing institutions, such as the International Monetary Fund, of serving the interests of Western countries and says they need “improvements to better serve the evolving global economy.” Last week, the Russian Finance Minister, Anton Siluanovurged BRICS members to create an alternative to the IMF.

Among other initiatives to facilitate trade and investment, Russia also proposes to create a “BRICS Clear” platform to settle securities trading.

The document calls for better communication between member countries’ credit rating agencies and a common rating methodology, but stops short of proposing a joint BRICS rating agencyan idea the group had previously discussed.

Rusia, el principal exportador de trigo del mundo, también está presionando para la creación de una bolsa de comercio de cereales de los BRICS, respaldada por una agencia de precios, para crear una alternativa a las bolsas occidentales donde se fijan los precios internacionales de los productos agrícolas.

Sin embargo, en una señal de que Moscú tendrá que trabajar duro para que sus propuestas prosperen, la mayoría de los miembros de los BRICS enviaron solo funcionarios de bajo nivel, y no ministros de finanzas ni banqueros centrales, a una reunión preparatoria la semana pasada.

Para la cumbre en sí, Rusia dice que espera dar la bienvenida a líderes de los nueve miembros de los BRICS y a unos 15 países más interesados en trabajar como socios del grupo, así como al ministro de Relaciones Exteriores de Arabia Saudita, que ha sido invitado a unirse.

“Los BRICS son una estructura que no se puede ignorar”, dijo la semana pasada a los periodistas el asesor del Kremlin, Yuri Ushakov.