BRICS will prioritize alternative payment systems in 2025, aiming to reduce dependence on the US dollar and promote trade in local currencies under Brazil's leadership.
BRICS prioritizes alternative payments in 2025
The development of alternative payment systems and reducing dependence on the US dollar will be the focus of BRICS initiatives in 2025 when Brazil takes over the presidency of the group. This focus aims to enhance economic cooperation between BRICS countries and their partners by facilitating trade in local currencies and creating financial mechanisms that bypass traditional systems dominated by the West.
Dmitry Suslov, deputy director of the Center for Comprehensive European and International Studies of Russia at the Higher School of Economics of the National Research University, emphasized this priority in an interview with Tass, explaining that Brazil's focus on alternative payment systems aligns with the direction set by Russia during its BRICS presidency. He stated:
The work of creating alternative payment systems and alternative settlement systems will continue throughout Brazil's presidential term. Additionally, Brazil's presidency will promote a greater role for the Global South in global governance.
The administration of Brazilian President Luiz Inacio Lula da Silva will continue to promote financial reforms initiated under the presidency of Russia, particularly focusing on facilitating transactions in local currencies between BRICS countries and their partners. As of January 1, 2025, partner countries such as Belarus, Bolivia, Indonesia, Kazakhstan, Cuba, Malaysia, Thailand, Uganda, and Uzbekistan will engage more actively in BRICS activities.
Suslov emphasized that the goal is to strengthen cooperation within this network rather than expanding BRICS membership in the near future. He stressed:
The main focus needs to and will be precisely placed on the relationship with partner countries.
"Even more so, as Brazil's official position is completely consistent with Russia's that the expansion of BRICS in the near future is not feasible, while it is necessary to achieve maximum content, emphasis must be placed on partnerships and maximum attention devoted to this partnership," he noted.
The upcoming BRICS summit in July will shorten the timeline for implementing initiatives, limiting the number of commitments compared to Russia's term, which saw over 250 events. Nevertheless, reducing dependence on the US dollar remains a top priority, with Brazil expected to promote alternative financial mechanisms that strengthen the influence of the Global South in global governance. Transitioning from G20 leadership to BRICS presidency allows President Lula to maintain a focus on economic development and financial sovereignty, reinforcing his administration's efforts to achieve greater economic independence from Western-dominated monetary systems.