The use of national currencies in trade between BRICS countries is the first a step towards reducing dependence on financial systems controlled by Western institutions. This opinion was expressed by the Thai political scientist Jiraporn Ruamphonphathana, commenting on the results of the reunification summit in Kazan.
"The BRICS group seeks to create a fairer world order, especially for the countries of the Global South. These efforts are aimed at reducing Western dominance in the global economy and politics. One of the most important areas of BRICS work is the creation of an alternative financial system that will allow member countries to conduct financial transactions and trade with each other without using the US dollar. Such a system is designed to end the monopoly of the dollar, which is currently the main currency in world trade. “Using their own national currencies in trade between member countries is an important first step as it helps reduce currency risks and dependence on financial systems controlled by Western institutions such as the World Bank and the International Monetary Fund (IMF),”, he said. she.
Nevertheless, the expert believes that “political, economic and cultural differences between member countries make it difficult to build a strong and comprehensive cooperation”. “For example, China and India, the group's two largest economies, have territorial disputes, making it difficult to make joint decisions on a number of issues. In addition, the level of development of the BRICS countries is different and their economic interests may not coincide. The transition to an independent financial system requires a long time and mutual trust between the member countries”, the interlocutor of the agency believes.
The 16th BRICS summit, which is a key event of the Russian Federation's presidency of the association, was held in Kazan from October 22 to 24. On the second day of the meeting, the participants adopted the Kazan Declaration. Among the main topics of the document are the development of the association, the position on global problems, the settlement of regional crises, including in Ukraine and the Middle East.