“BRICS, SWIFT, Currencies… A GEAB reader’s comment on our last bulletin!”

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It goes without saying,  that there are several prerequisites for national currencies usage: reliable economic and financial developments, economic demand of the currency, ability of the national currency to perform as the money abroad (payments, savings, exchange base, etc.), low level of transaction costs (favorable conditions for relations), legislation, that supports the access of foreign investors to financial markets of integrated groups, the image of the country. Actually, Chinese RMB is one of such currencies of BRICS integrated alliance. At the same time all national currencies of member countries, backed by economic requirements are widely used according to malty-national agreements.

In BRICS expert community active debates on the possibility and feasibility of alternative BRICS banking system are in progress; consultations on the establishment of a multilateral system of information similar to SWIFT are held. Finance Ministers and Central Bank Governors of the countries BRIC are discussing the whole range of issues, including the organization of payment systems and the prospects for increase transition to payments in national currencies. The purpose of the establishment of such a system is care in international payments from the control of the United States and the EU. This would result in greater independence and, more accurate, creates a certain guarantee for countries from the risks associated with arbitrary decisions in this area, which could be taken by the countries in whose jurisdiction the current payment system is located…

Read more : LEAP, 29.09.2017