BRICS members India and Russia are building a new partnership by using their national financial systems to ditch the US dollar. India’s payment system RuPay and Russia’s MIR system will soon be integrated for cross-border transactions between the two countries.
Russia said that it was decided to form a new alliance in a meeting with Indian Prime Minister Narendra Modi in Moscow.
In the meeting, India confirmed that it is ready to trade with Russia by linking the rupee system with MIR. If the BRICS countries start using their national currencies for trade, the US dollar will be eliminated for all transactions. This move will benefit India and Russia. It will use their local currency and save crores on exchange rate. Eliminating dependence on the US dollar will strengthen their local currency and domestic economy. BRICS is exploring various avenues to advance the de-dollarization agenda. Many US sectors would suffer if the BRICS reduced the use of the dollar for trade.
Andrey Kostin, CEO of Russia’s VTB Bank, said in a press conference on Wednesday, “We (BRICS) must create our own settlement system so that we can transact globally in our own national currency, not the US dollar.”
He said that India has a positive attitude towards working with Russia. RuPay and MIR payment systems may soon be integrated for trade settlement. We will proceed by considering the complexity involved in this matter.
Kostin also said that BRICS wants to break free from the US dollar, Euro and Western currencies.
Source: Watcher Guru
