Iran’s Foreign Ministry envisions a world where the payment systems of China, Russia and other BRICS+ countries are linked together. What difference would that make in the context of de-dollarization?
BRICS+ countries with their own payment system?
Nasser Kanani, the spokesman for the Ministry of Foreign Affairs of the Islamic Republic of Iran, mentioned this possibility at a press conference. He considered that the conditions were ripe for better integration economic systems of Brazil, Russia, India, China, United Arab Emiratesas well as other countries making up the BRICS grouping.
Who are the BRICS?
The BRICS+ countries are a geopolitical grouping that brings together the interests of the Global South. They include Brazil, Russia, India, China, South Africa, Iran, the United Arab Emirates, and Ethiopia. Other countries are also expected to join this grouping.
Citing the changing geopolitical conditions, the spokesperson gave a first example: Iran and Russia have already begun to integrate parts of their economiesAs a reminder, the two countries are subject to international economic sanctions, particularly from the United States.
The creation of a financial system specific to BRICS could therefore allow the countries concerned to avoid sanctions, but also to rely less on the dollar.
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De-dollarization, an increasingly significant issue for BRICS+
Alongside Iran, China, Russia and other countries in the grouping are indeed increasingly vocal about their desire to “de-dollarize” their systems. According to Nasser Kanani, Russia is particularly open to this project.Vladimir Putin seeing an opportunity in an economy battered by international sanctions:
“We are continuing to discuss. Iran has forwarded its proposal to Russia, in order to extend the mechanism to other BRICS countries.”
Already, Russian and Iranian bank cards are expected to be usable in both countries smoothly. Common international settlement systems will also be proposed as early as August. In addition, Russia is considering using cryptocurrencies to streamline trade with other countries.
❓ Read more about this – Russia may legalize stablecoins for trading with BRICS+ countries
This is a real challenge facing a dollar that has lost its luster in recent years. The de-dollarization movement, which had already begun, is thus seeing its first concrete measures within the BRICS+ countries.It is therefore possible that the greenback will no longer be the reference currency in certain regions of the world in the years to come.
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Source: Tass
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A journalist at Cryptoast since 2017, I am passionate about the issues of decentralization, privacy and regulation. I specialize in traditional economics and finance, analyzing how news from this sector influences the cryptocurrency sector, offering a unique and informed perspective to Cryptoast readers.
Marine Debelloir
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