BRICS Intra-Bank Payment System Launched: What Next?

[rattlesnake]

Russia and Iran, as two BRICS members, have finalized the integration of their national payment systems, a significant step toward enhancing their economic cooperation and circumventing U.S. sanctions. The heads of the central banks from both nations have been working closely to link Iran's SEPAM system with Russia's System for Transfer of Financial Messages (SPFS).

This integration will allow the two countries to conduct trade and financial transactions using their national currencies, the ruble and rial, reducing their reliance on the U.S. dollar and the Western-dominated SWIFT system. The new system will enable Iranian and Russian banks to issue and accept each other's bank cards, facilitating smoother transactions for businesses and individuals in both countries.

This move is seen as a strategic effort by both nations to mitigate the impact of international sanctions and strengthen their economic ties. Russia, heavily sanctioned due to its invasion of Ukraine, and Iran, facing long-standing sanctions related to its nuclear program and other issues, are increasingly collaborating to build financial infrastructure independent of Western influence.

The first trade transactions using this new system have already taken place, and both countries are optimistic about the potential to significantly increase their annual bilateral trade, aiming to double it from $4 billion to $8 billion. This integration is part of a broader effort to create a more resilient and self-sufficient economic partnership between Russia and Iran, further solidifying their alliance against Western economic pressures.

 

 

[MrStretch]

While there are many countries that have bemoaned the fact that the world conducts most of its trade in dollars, this new "system" would seem to be a bilateral trade benefit only.

Aside from the bilateral trade between Russia and Iran, which currently sits at an unimpressive $4b, it wouldn't seem - as announced - to benefit their trade with any other countries since they are both being economically sanctioned by many Western countries, and their economic trading partners.

Sounds like chest thumping without any real impact or importance.

[rattlesnake]

11 hours ago, MrStretch said:

While there are many countries that have bemoaned the fact that the world conducts most of its trade in dollars, this new "system" would seem to be a bilateral trade benefit only.

Aside from the bilateral trade between Russia and Iran, which currently sits at an unimpressive $4b, it wouldn't seem - as announced - to benefit their trade with any other countries since they are both being economically sanctioned by many Western countries, and their economic trading partners.

Sounds like chest thumping without any real impact or importance.

I think it has to be seen in the broader context of the multipolar world which is coming. Putin has long announced that political BRICS economic endeavours such as the New Development Bank were aimed at halting the practices of the exploitative West in many parts of the third world.

From October 2019:

On Monday, Putin gave the clearest idea yet of his pitch to African countries, warning of rising competition over Africa. Turning the tables on the West, he accused it of intimidating African countries to exploit the continent's resources.

"We see how an array of Western countries are resorting to pressure, intimidation and blackmail of sovereign African governments," Putin told the TASS news agency.

He did not name specific countries, but said he was referring to former colonial powers on the continent.

[…]

"They are using such methods to try to return lost influence and dominance in their former colonies in a new guise and rushing to pump out maximum profits and to exploit the continent," he said.

By contrast, Putin said Russia was ready to offer help without "political or other conditions" and to embrace the principle of African solutions for African problems.

https://www.reuters.com/article/world/putin-steps-up-drive-for-clout-in-africa-with-broadside-against-west-idUSKBN1X00V4/

[QECE]

The end is near for the delusional Anglosphere circle. 

Couldn't come soon enough. 

Kharma.

[rattlesnake]

1 hour ago, QECE said:

The end is near for the delusional Anglosphere circle. 

Couldn't come soon enough. 

Kharma.

Globalism and its ramifications are already dead, but the average individual does not know yet because the globalist propaganda machines (Western media) pretend things are still the way they were. Nothing is farther from the truth.

Meeting with New Development Bank President Dilma Rousseff
Vladimir Putin met with Dilma Rousseff, President of the BRICS New Development Bank.

Today I had the honour to take part in this very important forum about the new emerging multipolar world. I believe that today the world increasingly needs to become more multipolar, as the Global North has not been able to solve the global problems of humanity.
The NDB [New Development Bank] has specific goals: to fill this gap and provide the necessary investments; and Russia certainly plays a very important role in this. We are a different bank from the rest. We are a bank created by the countries of the Global South for the countries of the Global South, and we have some very important characteristics; we cannot impose conditions on our members.
I believe that we are a bank that plays an essential role in what is the theme of today’s forum: multipolarity is impossible without the multipolar economy. Of course, the multipolar world is also reflected in national currencies, which is another obligation of the bank: to attract and carry out settlements in national currencies.

http://www.en.kremlin.ru/events/president/news/74230