Kremlin calls for integrating BRICS payment system as rouble claws back sharply



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Kremlin calls for integrating BRICS payment system as rouble claws back sharply

In what has been widely viewed as a sagacious attempt from Russian policymakers amid a raft of sanctions from far-right European leaders alongside the US and Japan on the world’s eleventh-largest economy by nominal GDP and the sixth-largest by PPP (Purchasing Power Parity), the Finance Ministry of Russia issued a statement on Saturday saying that Kremlin had called on the BRICS group of emerging economies to create an integrated payment system.

If truth is to be spoken, latest move from Russia came forth amid an economic Armageddon on the transcontinental nation from a cascade of Conservative far-right western leaders as beforementioned, while the United States had barred Kremlin’s access of its Reserve Bank assets held in the US.

Besides, several EU member states also echoed the same approach, eventually blocking nearly a half of a $640 billion in FX reserves that Russian had been holding before February 24. Though, more surprisingly, even after the sanctions, the Russian Rouble is hovering at a higher level even before than that of February the 24th, while a Bloomberg news report had revealed on Friday that Russia would likely to shelve a profit above $320 billion from higher energy prices this year.

Amid such economic backdrop, rouble recouped much of its losses and became the best-performing currency in March, gaining as much as 60 per cent.

Russia calls on an integrated payment system for BRICS nations

Speaking in a ministerial meeting with BRICS, Russ Finance Minister Anton Siluanov said to the representatives from BRICS (Brazil, Russia, India, China and South Africa) that the global economic landscape had deteriorated substantially due to the sanctions.

Besides, adding that further sanctions on the economy would destroy the cornerstones of an existing global financial system which is entirely based on American Dollar, Siluanov said, “This pushes us to the need to speed up work in the following areas: the use of national currencies for export-import operations, the integration of payment systems and cards, our own financial messaging system and the creation of an independent BRICS rating agency.