BRICS Announces Alternative Financial System to Challenge SWIFT Dominance

(iexclusivenews) – The BRICS alliance, comprising Brazil, Russia, India, China, and South Africa, has officially declared its intention to create an independent financial system akin to SWIFT (Society for Worldwide Interbank Financial Telecommunication).

This move aims to reshape global trade dynamics and reduce reliance on the Western-controlled SWIFT system.

The SWIFT Superhighway

Currently, most cross-border transactions flow through SWIFT, acting as a global financial messaging service.

SWIFT facilitates cross-border payments and serves as the backbone of international trade.

However, its close association with the US dollar gives the United States significant influence over global financial flows.

SWIFT can be wielded as a powerful tool for shaping foreign policy, as demonstrated during geopolitical tensions.

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BRICS’ Vision

The BRICS nations collectively represent over 3.5 billion people and account for approximately 28% of the global economy.

With a combined GDP exceeding $28.5 trillion, they hold substantial economic clout.

By creating their own payment system, BRICS aims to break free from the dollar-centric SWIFT network.

De-Dollarization Agenda

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Russia, currently chairing the BRICS bloc, spearheads discussions on developing an alternative payment system.

The System for Transmitting Financial Messages (SPFS), initiated by Russia in 2014, serves as a direct competitor to SWIFT.

Unlike SWIFT, which relies on the US dollar, the SPFS enables settlements in local currencies, reducing exposure to dollar fluctuations.

Technical Considerations

Deputy Chairman of the Russian State Duma, Alexander Babakov, emphasized the need for technical compatibility.

The new system must seamlessly integrate with existing national payment systems, banks, and financial institutions.

Security and data protection are paramount to prevent cyber-attacks and unauthorized access.

BRICS’ pursuit of an alternative financial mechanism underscores its commitment to de-dollarization.

By creating a robust, secure, and independent system, BRICS aims to reshape global finance and reduce reliance on the dollar-dominated status quo.