The BRICS alliance is planning to create an independent payment system to settle cross-border transactions among member nations. The new payment system will not integrate the US dollar into the mechanism and could settle trade in local currencies. The US dollar could be sent on the path of decline and strengthen the native currencies of developing countries. Read here to know how many sectors in the US will be affected if BRICS ditches the dollar for trade.

The chances of hyperinflation in the homeland remain high if the US fails to import the dollar across the world. Developing countries are aiming to cut ties with the US dollar in the hopes of toppling it as the world’s reserve currency. The BRICS payment system could be the vehicle that could meet the financial aspirations of developing nations.

BRICS Payment System: More Than 50 Countries To Join the Bandwagon

Around 47 countries have currently expressed their interest in joining the BRICS alliance before the 2024 summit. All of them are developing countries hailing from Asia, Africa, South America, and Eastern Europe. The newfound ambition is to strengthen their local currencies and not be dependent on the US dollar for trade. Therefore, the upcoming BRICS payment system could meet their requirements and be beneficial to local currencies for trade.

Valentina Matviyenko, the Speaker of Russia’s Federation Council expressed that the BRICS payment system could convince other developing countries to start using it for trade payments to end reliance on the US dollar. She said that the new payment mechanism is no longer an idea but will turn reality soon. “This is no longer just an idea, it is moving forward in practice,” she said. “I hope that the system that has been created by BRICS will become a trend, an example that not only BRICS nations, but many other countries as well will join later,” she summed it up.