Cross-Border Payments Among BRICS Countries

KAZAN, Russia (Reuters) – Cross-border payments for trade among BRICS countries are facing challenges. However, Russian President Vladimir Putin stated that there are no intentions to create a specialized system, asserting that the current infrastructure is adequate.

Delays in transactions with key partners such as China and Turkey, due to banks being pressured by Western regulators to carefully examine dealings with Russia, have caused significant difficulties for Russian firms and banking institutions.

Before the summit, Russia suggested an alternative payment mechanism utilizing national BRICS currencies, which would include a new messaging network and a collective of national commercial banks linked via BRICS central banks.

Putin emphasized the importance of addressing settlement issues during a news conference following the summit, which included representatives from Brazil, Russia, India, China, and South Africa.

He noted that existing financial messaging systems established by the Russian central bank, along with similar systems operated by other BRICS nations' central banks, could facilitate payment exchanges in local currencies.

Nevertheless, he clarified, "We are not inventing any separate joint system for now. What we already have is on the whole sufficient."