BRICS Group Head: Instruments for Countries’ Payments May Be Introduced in Autumn
Some of the instruments needed to create an inclusive international financial system may be presented at the BRICS summit, which will be held in Kazan in October. This is TASS said the head of the task force on financial services of the Business Council of the association, Andrey Mikhailishin.
Among the projects being worked on, he named a common unit of account (Unit), a platform for international settlements in digital currencies of the BRICS countries (Bridge), a payment system (Pay), a settlement depository (Clear), an insurance system (Insurance), and a rating alliance. According to the expert, the key principles of the new financial system being designed, which will be presented in the fall, will be the decentralization of international interaction and the use of digital technologies.
As Mikhailishin specified, 40 percent of the Unit’s value is planned to be tied to the price of gold, and the remaining 60 percent to a basket of national currencies of the BRICS countries. “When you have a unit of account that can be converted into any national currency, it is more convenient for you to hold it, since it is a more liquid instrument,” the specialist explained, indicating that a common unit of account will make it possible to solve the problem of exchange rate volatility.
The project of an independent digital settlement and payment platform within BRICS is in a good stage of preparation, the Chairperson of the Federation Council Valentina Matvienko shared earlier. She noted that the BRICS Bridge platform will be able to ensure mutual settlements on a solid joint basis.
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