Several international analysts examined how the introduction of a BRICS international payment system might affect the current use of the U.S. dollar in trade. Experts cited sanctions evasion, cost reduction, and transaction confidentiality as the main advantages of this system compared to alternatives like SWIFT.
Checkmate: How Adopting a BRICS Payment System Might Erode the Dollar's Dominance in Trade Markets
WRITTEN BY
SHARE
Experts Warn Upcoming BRICS Payment System Might Dent Dollar’s Trade Supremacy
Experts from various international organizations are assessing the role that an international BRICS payment system might play in democratizing trade markets away from the ‘mighty’ dollar.
Alexander Ignatov, from the Presidential Academy’s Center for International Institutions Studies, explained that there are numerous advantages to adopting a SWIFT alternative. He highlighted three key elements that support the adoption of such a system: bypassing dependence on Western infrastructure, reducing transaction costs, and diversifying financial risks.
Anton Tabakh, chief economist at the Expert RA rating agency, addressed the core issue, noting that such a system would enable trade without adhering to Western unilateral sanctions against Russia and other countries.
Talking to Izvestia, he stated:
The main advantage of the new platforms will be that they are not American/European and cannot be used to implement sanctions or will not depend on changes in the policies of the U.S. authorities, or the Eurozone, or individual countries.
Tabakh referred to the relevance of this kind of alternative in tackling the supremacy of the dollar in trade transactions. He assessed all the recent events, including the tariff turmoil created by the Trump administration, undermine the authority of the U.S. as a pillar of financial markets.
“But the lack of an alternative financial infrastructure is one of the factors supporting this role,” he stressed, claiming that as alternatives come to exist, it will be less challenging to erode this supremacy.
These assessments come after Russian Foreign Minister Sergey Lavrov remarked last week that a proposal for an upcoming BRICS payment system would be available to non-members of the organization.
Read more: Russia Expects BRICS Payment Network to Go Global—SWIFT’s Monopoly Under Threat
