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New international reserve based on BRICS currencies, Putin

by Filippo Rossi
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brics summit new financial system

During the virtual meeting which is going on during these hours between the 5 BRICS leaders (Brazil, Russia, India, China, South Africa), Russian President Vladimir Putin has openly stated that a new international reserve to replace the dollar and the Western SWIFT system is ongoing. For now, only rumors that a new gold standard might be introduced.

Russian President stressed that the Russian System for Financial Messages (SPFS) is now open to BRICS bank in order to avoid the sanctions that the West has imposed on the country after the attack on Ukraine. Despite the sanctions have not been enforced by most of world’s countries, this has given hope for a new financial system that could replace the dollar-based one, monopolized by the United States and their institutions.

During the meeting, China’s President Xi Jinping has renewed his support to Moscow. Russia, after an initial suffering due to the imposed sanctions, has witnessed an economic stabilization and growth in the past weeks, growing its confidence to engage more with the allies and starting new partnerships in different sectors.

Addressing his counterparts, Putin said that the West is  They are pursuing an essentially irresponsible macroeconomic course, including the launch of a printing press, uncontrolled emission of and the accumulation of unsecured debts”.

According to some rumors, which for now they remain unconfirmed, this new system shall be based on a new gold standard.

This step comes after Russia’s Finance Minister Siluanov stressed last April that a radical change was needed. Siluanov said “The current crisis is man-made, and the BRICS countries have all necessary tools to mitigate its consequences for their economies and the global economy as a whole.”

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