Jump to content

BRICS Intra-Bank Payment System Launched: What Next?


rattlesnake
 Share

Recommended Posts

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.

 

 

  • Cool 1
Link to comment
Share on other sites

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.

Link to comment
Share on other sites

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/

  • Like 1
Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Unfortunately, your content contains terms that we do not allow. Please edit your content to remove the highlighted words below.
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

 Share

  • Join Thaiger Talk Today!

    Sign up in 30 seconds and join the discussion on everything Thailand!

  • Latest Posts

    1. 5

      News Forum - Thai man arrested for pimping out 16 year old boy to sex creator

    2. 61

      News Forum - Thailand ranks 32nd globally for Muslim travel

    3. 5

      News Forum - Thai man arrested for pimping out 16 year old boy to sex creator

    4. 5

      News Forum - Thai man arrested for pimping out 16 year old boy to sex creator

    5. 5

      News Forum - Thai man arrested for pimping out 16 year old boy to sex creator

  • Tell a friend

    Love Thaiger Talk? Tell a friend!
×
×
  • Create New...

Important Information

By posting on Thaiger Talk you agree to the Terms of Use