Putin Explains How BRICS Partners Are Working on Currency Alternatives for Trade and Reserves

June 23, 2022 (EIRNS)—Vladimir Putin’s mention of a new international reserve currency in his Greeting to the BRICS Business Forum yesterday adds a new dimension to the global discussion about a new monetary system. Although several Russian officials had raised the issue, especially in the aftermath of the Western sanctions, it is the first time that the President of Russia has addressed the issue and endorsed it officially. It did not go unnoticed by Indian media such as Swarajya, in reporting that “Russian President Vladimir Putin on Wednesday (22 June) said that the BRICS countries are working on reliable alternative payment mechanisms for international settlements.... Further, he said that creation of an international reserve currency based on the basket of the BRICS currencies is also being considered.”

The relevant section of his Greeting to the Business Forum, the entirety of which is published on the Kremlin website, reads: “Together with BRICS partners, we are developing reliable alternative mechanisms for international settlements. The Russian Financial Messaging System is open for connection with the banks of the BRICS countries. The Russian MIR payment system is expanding its presence. We are exploring the possibility of creating an international reserve currency based on the basket of BRICS currencies.”