The BRICS alliance continues to discuss new and alternative payment options to challenge the US dollar on the global stage. Russian Foreign Minister Sergey Lavrov confirmed that the alliance is looking to create a trans-border payment initiative. The idea is being discussed at the initiative of Brazil, which will host the 17th summit in Rio De Janeiro on July 6-7, 2025. Brazil will chair the upcoming summit to promote reform in global governance.
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BRICS vs the US Dollar: Alternative Payments Being Discussed
Suggestions to create a trans-border payment initiative are being floated by Brazil and could discuss the prospects at the upcoming summit in July. BRICS is looking for a payment settlement other than the US dollar and usher into a new global financial infrastructure. Read here to know how many sectors in the US will be affected if BRICS ditches the dollar for trade.
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“This is being discussed in BRICS, at the initiative of (Brazilian President Luiz Inacio). The previous summit stated a decision on the necessity of developing a proposal on alternative payment platforms through finance ministries and central banks. Such proposals have been made, they suggest, in particular, the creation of a so-called trans-border payment initiative, the creation of a reinsurance company, and the BRICS Clear settlement and depositary infrastructure,” said Lavrov.
The summit could face challenges as US President Donald Trump has vowed to protect the dollar from the BRICS onslaught. The alliance needs to carefully navigate threats of tariffs and cuts in aid in the upcoming summit in July. De-dollarization could no longer be easy as Trump has warned developing countries of consequences if they stray away from the US dollar.
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BRICS might find it harder to create a new payment system and challenge the US dollar in 2025. Trump is watching the group and could come up with tariffs that might alter the course of the alliance.