BRICS Reviewing Creation of Unique Global Payment Network

BRICS, the alliance of major global economies, is seriously contemplating the introduction of a unique global payments system. This development was recently reported by TASS, Russia’s state-sponsored news agency. It is expected that this topic will be a primary focus during the upcoming BRICS conference.

Russia’s Finance Minister, Anton Siluanov, provided clarity on this matter. He stated, “We are working on our financial messaging system, the SPFS. Our Chinese counterparts have an existing system, and other BRICS members are either equipped with their systems or are in the developmental phase.” The intention, he conveyed, is for this subject to be at the forefront of discussions among the financial leaders of BRICS countries.

The significance of this initiative is emphasized by BRICS’s recent decision to increase its membership. The group, originally consisting of Brazil, Russia, India, China, and South Africa, has now welcomed Saudi Arabia, Iran, Ethiopia, Egypt, Argentina, and the UAE.

Providing insight into Russia’s stance on BRICS’s trajectory, Siluanov highlighted the consortium’s objective of shifting its alliances from Western relations to a more Southeast-focused approach. He anticipates this strategic direction to be sustained in the coming years.

Currently, SWIFT stands as a vital component in global banking, facilitating secure financial transactions worldwide. However, its role was challenged in March 2022 when, under directives from the European Union, it excluded several Russian banks.

South Africa’s Finance Minister, Enoch Godongwana, offered his perspective in August. He regards a BRICS-driven payment system as an avenue to promote trade in local currencies, diverging from the US dollar’s dominance. Nonetheless, he clarified that while aiming to amplify regional commerce, this new initiative doesn’t set out to supplant SWIFT, acknowledging the inherent complexities in such an endeavor.