Cross-border payments for trade between BRICS nations face ongoing challenges, but no new payment system is currently planned, according to Russian President Vladimir Putin. He stated that the existing infrastructure is adequate for handling transactions among BRICS members, including Brazil, Russia, India, China, and South Africa.
Payment delays, especially with key trade partners like China and Turkey, have been problematic for Russian businesses and banks. These delays stem from Western regulatory pressures, which have increased scrutiny of transactions involving Russia.
Ahead of the BRICS summit, Russia proposed a new payment system using national BRICS currencies. This system would include a messaging network and links between commercial banks and BRICS central banks.
During the summit, Putin emphasized that facilitating settlements is a critical issue. He noted that the current financial messaging systems, developed by Russia’s central bank and similar systems from other BRICS nations, are capable of supporting mutual payments in national currencies.
For now, no new joint system is being developed, as the existing financial infrastructure is deemed sufficient, Putin concluded.
By optimizing the use of current systems, BRICS countries aim to strengthen cross-border trade while addressing payment challenges.
