BRICS Launches Symbolic Paper Currency
HOLIDAY NEWS - The BRICS Summit (Summit) in Kazan, Russia launched symbolic banknotes triggering a new direction in global finance. The banknotes feature the flags of Indonesia and the founding countries of the BRICS namely Brazil, Russia, India, China and South Africa.
BRICS banknotes symbolize the collective ambition of these countries to explore alternatives to the US dollar in cross-border transactions. These developments highlight growing efforts within the BRICS to build a self-sustaining economic system less tied to the Western financial system.
Russian President Vladimir Putin emphasized at the summit that the BRICS countries are not rejecting the US dollar outright, but are preparing alternatives if access to the US dollar continues to be restricted.
"The dollar remains the most important tool in global finance, but using it as a political weapon will undermine confidence in this currency," said Putin as quoted by the Financial Express, Friday (25/10/2024).
Putin stated that BRICS will not go to war against the dollar but will seek alternative methods if the situation requires it. "If they hinder us, we will look for alternatives," he explained, underscoring the pragmatic approach adopted by BRICS.
Putin's remarks resonate in the larger context of the sanctions imposed on Russia, which significantly limit its access to the dollar-dominated global financial system. By exploring alternative currencies for trade, BRICS seeks to reduce the risks posed by such political measures. According to Putin, using the dollar as a weapon will speed up the transition to a new financial structure, signaling that the BRICS bloc is moving towards a fairer economic system.
New Development Bank (NDB) Chair Dilma Rousseff echoed Putin's concerns, stating that the dollar had been used as a political tool, undermining its reliability in global finance.
Ambition to Leave the US Dollar
BRICS countries officially support settling cross-border payments in local currencies, marking a significant step to reduce dependence on the US dollar. The Kazan Declaration, issued at the end of the summit, stated, "We welcome the use of local currencies in financial transactions between BRICS countries and their trading partners."
Many Indonesians are in the Latest BRICS Currency in Russia, Check the Complete Facts
A photo shows Russian President Vladimir Putin carrying bills suspected to be BRICS currency [Ist]
- Social media was shocked by a photo showing the BRICS currency during the summit meeting which took place in Kazan, Russia earlier this week.
In pictures circulating on social media, Russian President Vladimir Putin is seen carrying a replica of "BRICS MONEY".
The BRICS banknote in question features the flags of the five BRICS countries (Brazil; Russia; India; China; and South Africa) linked together to form a circle.
Not only the five founding countries, there is even the name Indonesia in the BRICS Currency. In the narrative circulating, there are possible flags of new countries interested in joining BRICS, including Indonesia, Mexico, Egypt, Nigeria and Bahrain.
During the meeting, the founders of BRICS, especially China through Xi Jinping and Russia with Vladimir Putin, discussed a lot about how BRICS could become the most important "platform" in the world for solidarity and cooperation between developing countries.
Earlier, Chinese President Xi Jinping made a historic announcement regarding the new BRICS payment system to remove dependence on the US dollar.
Addressing those present, the president discussed why the system is so important for groups that continue to seek a multipolar world.
“There is an urgent need to reform the international financial architecture,” said Jinping, quoted via Anadolu.
“BRICS must play a leading role in promoting a new system that better reflects the profound changes in the balance of international economic power,” he added.
Not only Xi Jinping, Egyptian President Abdel Fattah al-Sisi also asked BRICS to carry out their financial transactions using local currency.
"Egypt emphasizes the importance of advancing the cooperation framework in the field of financial settlements using local currencies, and leveraging member countries' comparative advantages to launch joint economic, investment and development projects," Sisi said in his speech at the BRICS Summit in KotaKazan, Russia, last Wednesday.
Egypt was one of four countries that officially joined the BRICS economic group last January.
BRICS Currency Launch to be Revealed Soon?
The blockchain-based BRICS payment system has always been seen as an important de-dollarization development. For the bloc, this system provides an opportunity to circumvent Western financial infrastructure such as the SWIFT payment platform. Therefore, this system provides an important opportunity for countries in the group to promote the use of their currencies for trade.
BRICS has enjoyed unprecedented growth over the past two years. This bloc seeks to increase its presence on a global scale and disrupt Western domination. Over the past year, the bloc has stepped up de-dollarization efforts to reduce overall dependence on the US dollar.
However, until now BRICS has not released an official currency. However, a number of observers hope that this currency will be supported by the value of gold.
Related reports state that the new currency will be backed by 40% gold and 60% local currency. Such regional currencies could include the Chinese yuan, Russian ruble, and Indian rupee, among other member countries' official means of payment.
However, this news is not completely true. According to The Guardian's report, the BRICS summit did indeed discuss cooperation and explore ways to reduce dependence on the US dollar (dedollarization), especially considering its use as a political tool. Even so, there is no information regarding the release of the BRICS currency.
Reports on social media that Putin officially launched a currency that could replace the dollar at the BRICS summit are false because BRICS has not officially introduced their currency.