Russia’s attempt to convince other countries in BRICS to ditch the dollar in favor of building their own settlement system is facing certain challenges.
Despite the lack of progress in developing the alternative mechanism, Moscow insists members of the organization are already using “reliable” national currencies in their dealings.
BRICS states are not ditching the Greenback, Russia admits
The establishment of a BRICS system for cross-border settlements is being hampered by the adherence of some potential participants to the U.S. dollar.
The conclusion was drawn by Russian Finance Minister Anton Siluanov at a forum at the Financial University, one of Russia’s leading educational institutions in the field of economics.
This system only works until the moment the United States imposes restrictions, the Russian official warned during his participation in the event.
He highlighted that the emerging economies in the group have already started settling accounts directly to protect themselves from external factors.
In that regard, the launch of a system for international settlements in BRICS is a major theme, Siluanov added. This was one of the key priorities of Russia’s presidency last year.
Quoted by the Interfax news agency on Tuesday, the head of the Russian Ministry of Finance (Minfin) elaborated:
“The creation of a cross-border settlement system within BRICS is a rather difficult topic, because not everyone is ready to participate. Many are satisfied with dollar settlements until there are restrictions.”
And when such measures are imposed, demand within the format for a proprietary platform for settlements will grow, Anton Siluanov predicted.
Russia not aiming for de-dollarization, minister claims
Despite the lack of progress in this direction, BRICS settlements are, nevertheless, “conducted in reliable currencies and a reliable infrastructure,” the Russian minister assured.
“If the dollar is unreliable now, then we don’t use it. We’ll see and analyze what happens next, but within our main trading partners – BRICS – we settle directly in national currencies,” he explained, also pointing out:
“We don’t have a goal of de-dollarization but to ensure stable settlements. If the dollar has proven itself to be a currency that can be turned off for settlements at once, what trust could we have?”
Siluanov also suggested that in addition to national fiat currencies, modern technologies, including fintech solutions and cryptocurrencies, can also serve as instruments ensuring settlements in foreign trade, reminding that Russia already has the necessary legislation for that in place.
Facing stiff Western sanctions, imposed over its invasion of Ukraine, the Russian Federation introduced an “experimental legal regime” (ELR) this year, allowing import and export firms to use cryptocurrencies in payments with partners abroad.
The special arrangement helps Russian companies to circumvent the restrictions affecting traditional financial channels. Moscow has lately been taking steps to regulate crypto transactions beyond the ELR.
Siluanov’s statements come after the president of Belarus, a partner country of BRICS and Russia’s closest ally, spoke of cryptocurrency as offering a path toward diminishing the dominance of U.S. fiat.
Alexander Lukashenko highlighted global de-dollarization efforts in comments earlier this month, as reported by Cryptopolitan.
Meanwhile, Iran, which joined BRICS in 2024, urged members of the intergovernmental organization to use crypto in their transactions.
Tehran also suggested adopting a common cryptocurrency in the Shanghai Cooperation Organization (SCO), another body of nations seen as an alternative to established regional and global formats.
If you're reading this, you’re already ahead. Stay there with our newsletter.
