BRICS Announces Plan to Ditch Swift, Create Alternative Financial System
The BRICS alliance is developing an alternative financial system to reduce reliance on SWIFT, including a new messaging system and a gold-backed currency, aiming to diminish U.S. dollar dominance.
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The BRICS alliance, comprising Brazil, Russia, India, China, and South Africa, is advancing plans to establish an alternative financial system to reduce reliance on the Western-dominated SWIFT system. This initiative includes creating a new financial messaging system controlled by state-owned banks in BRICS countries, aimed at facilitating secure cross-border transactions without Western influence. The motivation stems from historical vulnerabilities exposed during the 2008 financial crisis and recent geopolitical tensions, particularly the sanctions against Russia following its actions in Ukraine, which highlighted the risks of dependence on Western financial systems.
Additionally, BRICS is exploring the introduction of a gold-backed currency to provide a stable alternative to the U.S. dollar, which currently dominates global trade. This currency would not only facilitate trade among BRICS nations but also attract other developing countries seeking to diversify their reserves. Analysts suggest that these initiatives could significantly impact the U.S. economy by diminishing the dollar's global dominance, potentially destabilizing U.S. financial institutions and increasing inflationary pressures.
Overall, the BRICS efforts reflect a broader movement towards a multipolar financial world, aiming to create a more equitable international economic order that better represents the interests of diverse nations. By reducing dependence on the U.S. dollar and Western financial systems, BRICS seeks to assert greater influence on the global stage and enhance economic cooperation among its member states.
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2 commentsRussia’s importance has been diminishing exponentially. Their greatest exports have all become less valuable (their military technology has shown up to be below par, their gas pipelines to Europe are basically done for, their most valuable human capital has fled/died in the millions).
Brazil is in economic crisis. Again their economy has been becoming less important rather than more over the past 5-10 years.
And the less said about the South African economic disaster the better.
India and China also hate each other and are literally fighting an active war with each other as we speak.
BRICS as an organization is terribly impotent considering how important 2 of their 5 largest members are in the world order.
Also, it’s nice for Switzerland that they have SWIFT but it’s really not that useful. We learnt that when SWIFT detonated the nuclear option a couple of years ago against Russia and nothing happened.
Clearly SWIFT has little geopolitical value, so with that known now, even western economies will benefit with some competition.
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