Putin urges BRICS to explore BRICS Pay as alternative to SWIFT
Russia’s president asked BRICS members, including India, to consider a local-currency payment, depository and clearance system, alongside a reinsurance mechanism and grain exchange. The proposals remain future initiatives, but could eventually reshape cross-border settlement infrastructure.
What happened
Putin urged BRICS members, including India, to consider BRICS Pay, a payment, depository and clearance system using local currencies, alongside a reinsurance
Key facts
- $1.2 trillion
- $2.5 billion annually
- 123 projects
- nearly $40 billion
- 49 per cent
What changed
Putin urged BRICS members, including India, to consider BRICS Pay, a payment, depository and clearance system using local currencies, alongside a reinsurance mechanism and grain exchange to reduce dependence on Western financial and commodity-market infrastructure.
Why this matters
Monitor BRICS Pay as a long-term option for reducing cross-border payment friction and currency-conversion exposure in BRICS markets, but treat it as non-operational for now.
What to watch
- Formal BRICS agreement on governance, operating rules, capital structure, membership eligibility, and transaction standards for BRICS Pay.
- Commitments from China, India, Brazil, Gulf members, or major state-owned banks to connect domestic payment systems or provide clearing liquidity.
- Pilot volumes in trade-heavy corridors, especially China-Russia, India-Russia, China-Brazil, and Gulf-Asia commodity routes.
- Creation of a BRICS clearinghouse, shared depository, settlement token, or multilateral FX liquidity facility.
- Supplier contracts shifting from dollar invoicing to local currencies or offering discounts for non-dollar settlement.
Also reported by
- BL · Consumer & Economy — Same time