... Russian Chairmanship and the BRICS Summit in Kazan. Also noteworthy are statements about the important role of the BRICS New Development Bank in the implementation of joint investment initiatives, the creation of a Network of research centres of the BRICS countries in the field of finance, about the use of unilateral restrictive measures (sanctions), as well as support for open world trade being the fundamental role of the WTO.
Yaroslav Lissovolik:
The 2023 “Expansion Summit”: BRICS+ History in the Making
The 2023 Summit Declaration,...
... global financial environment.
Adopted on August 23, 2023, the Declaration of the 15
th
BRICS Summit on the admission of six new members to the group (Argentina, Egypt, Ethiopia, Iran, Saudi Arabia and UAE) is intended to strengthen cooperation among BRICS in the domain of international finance. In particular, it is about fostering further dialogue on payment instruments to facilitate trade and investment flows between the BRICS members as well as among other developing nations. The Parties
called for
more robust correspondent banking ...
... of between Russian traders’ settlement currency choice and BRICS de-dollarization priorities.
To explain this phenomenon in greater detail, Karataev et al. outlined two key fundamental market barriers preventing the use of national currencies for BRICS trade finance specifically which need to be overcome as a supplement intra-BRICS currency swaps:
1. Currency Volatility:
Exchange rate fluctuations create uncertainty in optimizing settlement pricing and profitability at time of contract fulfilment from both ...
... considering a new currency called R6 or
Robust, Resolve, Relay or Reform
?
Establishing a new currency purpose oriented for trade among these six economies is long overdue. The Sr. Management of NDB can easily expand the remit of the bank by entering trade finance and project finance between these six countries alone. The bank could ask its shareholders to deploy and commit some of their gold reserves (abundant resources and gold mines in Russia, Iran, and South Africa) to this new currency to accelerate ...
... bilateral agreements on financing development programmes have already been reached between BRICS countries, including agreements on currency swaps (between China and Brazil) and bilateral loans (
between China and South Africa
).
Despite the fact that the BRICS countries are able to finance development programmes on a bilateral basis, a number of incentives encouraged them to set up the bank — firstly, the need to share risks, and secondly, the need to increase the legitimacy of their south—south cooperation
[1]
.
The ...
... accompanied by a more complicated monetary and financial architecture by reducing the weight of the U.S. dollar in international finance. The global economy will become more balanced if it starts to rely upon a number of power centres.
Government of South ... ...
The strength of any economic centre directly depends on the liquidity of that centre’s currency in the global system. BRICS is a new centre of power, although it is unlikely that a single BRICS currency is going to appear within the next quarter ...
