BRICS: The unified financial system that does not rely on dollars

The BRICS economic union is currently in the process of creating a single financial system in 2024 to facilitate trade within the bloc without using the US dollar.

Deputy Minister of Foreign Affairs of Russia Sergey Ryabkov discuss the plan as an important part of this year's country's presidency of the collective in 2024.

In the first four months of the year, the bloc consistently embraced the adoption of digital assets. This proved to be a crucial part of his efforts to circumvent the need for the US dollar in unilateral transactions. With the introduction of a unified payment system, this process will become even more rational.

In 2023, the BRICS economic union integrated two key initiatives: enlargement and de-dollarization. Both ideas reached their climax at last year's annual summit. Specifically, the alliance added five countries to its ranks while firmly embracing plans to promote local currencies in international trade.

However, these initiatives are far from over, as the block will continue to grow in both aspects. As part of its de-dollarization plans, the BRICS announced that in 2024 it would develop a single financial system to trade without dollars. This appears to be one of the key parts of Russia's chairmanship of the alliance this year.

Regarding Russia's financial focus during its presidency, Ryabkov said that "several options were considered." One of the options being developed appears to be "the option of creating a platform to unify the financial systems" of the BRICS members.

Ryabkov called this the BRICS bridge, in which the countries will integrate "the existing system of digital currencies of the central banks in the BRICS countries." In addition, the "national financial reporting systems" will be connected within the framework of the initiative.

The Deputy Foreign Minister also noted that a face-to-face meeting had taken place earlier this year. This means that the project was included in the general cooperation plans of the BRICS.

Such an idea would be crucial to the implementation of the BRICS plans. Specifically, the effect of its de-dollarization would be greatly enhanced by a financial system that brings together the possibilities of using digital currencies. Moreover, it increases pressure on the dollar, which the US has already assured will not get a digital counterpart.