By Free Republic | Created at 2024-09-28 15:36:52 | Updated at 2024-09-30 11:38:35
1 day ago
Pepe Escobar: Will a BRICS Bretton Woods Take Place in Kazan?
Sputnik ^ | 23 Sep 24 | Pepe Escobar
Posted on 09/28/2024 8:21:50 AM PDT by delta7
With less than a month before the crucial BRICS annual summit in Kazan under the Russian presidency, serious informed discussions are raging in Moscow and other Eurasian capitals on what should be at the table in the de-dollarization and alternative payment system front.
Earlier this month Andrey Mikhailishin, head of the task force on financial services of the BRICS Business Council, detailed the list of top projects under consideration. They include:
A common unit of account - as in The Unit, whose contours were first revealed exclusively by Sputnik. A platform for multilateral settlements and payments in BRICS digital currencies, connecting the financial markets of BRICS members: that’s BRICS Bridge, which bears similarities with the Bank of International Settlements-linked MBridge, already in effect. That will complement intrabank systems already in action, as in Russia’s SPFS and Iran’s CPAM settling financial transactions – and 60% of their trade - in their own currencies.
A blockchain-based payment system that entirely bypasses the US dollar: BRICS Pay. Arguably 159 participants may be ready to adopt this sanction-evading, similar-to-SWIFT mechanism right away.
A settlement depository (Clear). An insurance system. And crucially a BRICS rating agency, independent from the Western giants. What’s at stake is the extremely complex design of a brand-new financial system – decentralized and using digital technology. BRICS Clear, for instance, will be using blockchain to record securities and exchange them. As for The Unit, the value of the common unit of account is pegged by 40% to gold and by 60% to a basket of BRICS member’s national currencies.
The BRICS Business Council considers The Unit a “convenient and universal” instrument, since a unit can be converted into any national currency.
That would definitely solve the nagging problem of exchange rate volatility when cash balances accumulate from settlements in national currencies; for example, a mountain of Indian rupees used to pay for Russian energy.…much more.
TOPICS: Business/Economy; Foreign Affairs; Government
KEYWORDS: brics
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The upcoming Brics Summit has the potential to shut down the ability for nations to keep our government running,( no vehicle to buy our debt instruments ). Our government debt ( bonds, Treasuries, etc) goes through SWIFT.
Not saying it’s going to happen, but it is a possibility. In any case, the upcoming Brics Summit is in a few weeks- and the MSM is silent. 159 countries will be attending.
Most do not even know what SWIFT or Brics is, they may soon find out.
1 posted on 09/28/2024 8:21:50 AM PDT by delta7
To: delta7
Give me a brake. Between them, the BRICS don’t have a single currency that anyone wants. The best they can hope for is a central gold storage vault where they can clear accounts without shipping the gold by plane.
Even then, who do they trust to keep the gold?
2 posted on 09/28/2024 8:33:56 AM PDT by MMusson ( )
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