Russia calls for integrating BRICS payment systems By Reuters

© Reuters. FILE PHOTO: Russian Finance Minister Anton Siluanov attends a gathering with members of the federal government in Moscow, Russia March 12, 2020. Sputnik/Dmitry Astakhov/Pool through REUTERS

(Reuters) – Russia, hit by Western sanctions, has referred to as on the BRICS group of rising economies to increase using nationwide currencies and combine cost techniques, the finance ministry stated on Saturday.

Sanctions have lower Russia off from the worldwide monetary system and from practically half of its gold and overseas trade reserves, which stood at $606.5 billion in early April.

On Friday, Finance Minister Anton Siluanov informed a ministerial assembly with BRICS, which consists of Brazil, Russia, India, China and South Africa, that the worldwide financial state of affairs had worsened considerably because of the sanctions, the ministry’s assertion stated.

The brand new sanctions additionally destroy the inspiration of the prevailing worldwide financial and monetary system based mostly on the U.S. greenback, Siluanov stated.

“This pushes us to the necessity to pace up work within the following areas: using nationwide currencies for export-import operations, the mixing of cost techniques and playing cards, our personal monetary messaging system and the creation of an unbiased BRICS ranking company,” Siluanov stated.

Worldwide cost playing cards Visa (NYSE:) and MasterCard suspended operations in Russia in early March and Russia’s greatest banks have misplaced entry to the SWIFT world banking messaging system.

Russia arrange its personal banking messaging system, often called SPFS, as an alternative choice to SWIFT. Its personal card cost system MIR started working in 2015.

They have been a part of Moscow’s efforts to develop homegrown monetary instruments to reflect Western ones, to guard the nation in case penalties towards Moscow have been broadened.

The finance ministry stated BRICS ministers have confirmed the significance of cooperation in efforts to stabilise the present financial state of affairs.

“The present disaster is man-made, and the BRICS nations have all vital instruments to mitigate its penalties for his or her economies and the worldwide economic system as an entire,” Siluanov stated.

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