The foreign ministers of BRICS nations and 13 other countries gathered in Russia to discuss enhancing trade without relying on the U.S. dollar.
By yourNEWS Media Newsroom
The BRICS Summit commenced on Monday in Russia, with foreign ministers from BRICS member nations and representatives from 13 additional countries discussing ways to reduce reliance on the U.S. dollar in international trade. The meeting, held outside the annual BRICS summit, focused on expanding trade using national currencies and developing an independent payment system.
Russian Foreign Minister Sergey Lavrov emphasized the ongoing efforts to improve the international monetary system and create a platform for payments in national currencies, fulfilling decisions made at the previous BRICS summit in Johannesburg, South Africa. Lavrov stated that proactive work is being done to enhance the monetary system and support mutual trade without the U.S. dollar.
Last August, BRICS held its annual summit in Johannesburg, where Russian President Vladimir Putin chose not to attend due to an International Criminal Court (ICC) warrant for his arrest on war crimes charges in Ukraine. This year, Russia holds the BRICS presidency and will host the official summit in Kazan in October.
A significant portion of global trade is conducted using the U.S. dollar, which strengthens the American currency but leaves nations vulnerable to sanctions. In response to increasing sanctions from Western countries, particularly against Russia and China for human rights abuses, both nations have led efforts to “de-dollarize” their economies. The 2023 BRICS summit prominently featured discussions on replacing the dollar with the Chinese yuan or the Russian ruble in the short term, and potentially creating a new BRICS currency in the long term.
Brazilian President Luiz Inácio Lula da Silva questioned the dominance of the U.S. dollar in international trade, suggesting that the BRICS bank could have its own currency to facilitate trade among member countries. Brazil has already taken steps to limit its use of the dollar, agreeing to use the yuan for bilateral trade with China in March 2023.
The BRICS meeting began with a moment of silence for the late Iranian President Ebrahim Raisi and Foreign Minister Hossein Amir-Abdollahian, who died in a helicopter crash in May. Russian Foreign Minister Lavrov condemned Western nations, accusing them of falsely claiming the right to define universal values under a rules-based order. Lavrov’s remarks set a combative tone for the meeting, reflecting the bloc’s opposition to Western policies.
Ali Bagheri Kani, Iran’s interim foreign minister, highlighted BRICS as the largest international economic organization operating outside Western unilateralism. He emphasized Iran’s significant role in the multilateral world system.
President Putin, speaking at the St. Petersburg International Economic Forum (SPIEF), reiterated the need for countries to strengthen their sovereignty and reduce dependency on the U.S. dollar. He noted that BRICS is working on developing an independent payment system free from political pressure and external sanctions.
BRICS, initially comprising Russia, China, Brazil, India, and South Africa, expanded in 2024 to include Egypt, Ethiopia, the United Arab Emirates, and Iran. The bloc extended invitations to Argentina and Saudi Arabia, with Saudi Arabia participating in the current meeting, despite not fully completing the induction process.
Representatives from 22 nations, including non-member countries like Cuba, Belarus, Vietnam, Turkey, and Venezuela, are attending the two-day BRICS meeting in Nizhny Novgorod, Russia. The presence of these countries highlights the growing interest in the BRICS coalition as a counterbalance to Western economic dominance.
The summit’s focus on “de-dollarization” and enhancing economic cooperation among member and interested nations underscores the bloc’s strategic efforts to diminish the influence of the U.S. dollar and mitigate the impact of Western sanctions.
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