BRICS Launches Intrabank System: Disruption of Western Finance System? #Finance

over the past month brics has seen substantial developments that underscore its growing influence on the global stage from financial banking system to group expansion as of August 2024 around 40 to 47 countries from various regions including Africa Asia and South America have expressed

their desire to join bricks this interest is fueled largely by the Block’s potential to challenge the current global economic order which is heavily dominated by Western institutions like the IMF and World Bank many of these nations are seeking to diversify away from Reliance on the US dollar

as they perceive this dependency to pose significant risks to their economies especially considering potential US economic downturns in parallel to its membership expansion brics is advancing initiatives to create alternative Financial systems for example the brics new development bank has approved

98 infrastructure projects totaling $33 billion since its Inception positioning itself as a credible alternative to Western dominated financial institutions Additionally the group is working towards an intrabank payment system aimed at reducing Reliance on the dollar and crossboard transactions

which is seen as a key step toward dollarization in this CashNews.co we take you through the latest development of bricks as of August 2024 launch of brics intrabank system let’s examine a major recent development in brics that advances Financial Independence for its members Russia and Iran

have significantly advaned their economic collaboration by linking their National Payment Systems this integration connects Iran’s cpam and Russia’s spfs allowing Financial transactions to be processed using their respective currencies the ruble and Rial bypassing the US dollar and the

Swift Network this initiative is crucial as it helps both Nations circumvent Western sanctions and builds greater economic independence the linked Payment Systems enable crossb transactions with over 60% of trade between the two countries now conducted in National currencies this effort has boosted

bilateral trade which surged by 15% in the past year reaching $4.6 billion both Nations aim to double this trade volume to 8 billion do annually the integration also allows the mutual acceptance of bank cards facilitating easier trade and financial exchanges between businesses and individuals

Russia’s vtb bank has launched Services enabling money transfers between the two countries further strengthening their economic ties these measures are part of a broader strategy within brics to Foster stronger economic alliances and reduce Reliance on Western Financial systems brics

membership and expansion this month several Nations have garnered attention as they engage in discussions or take steps toward joining the brics block aeran has officially submitted its application to join the brics economic blocking making this move shortly after a visit from Russian President

Vladimir Putin on August 20th 2024 the azerbaijani foreign Ministry confirmed the application which followed growing interest from azerbijan in expanding its Global Partnerships azer Ban’s intent to join bricks was also highlighted during the Shanghai cooperation organization Summit in July

20124 where the country signed a joint Declaration on strategic partnership with China further solidifying its aspirations China has expressed strong backing for Malaysia’s potential membership in bricks emphasizing that the expansion of the block could promote a more Equitable global system

Chinese foreign Ministry spokesperson lyen highlighted the significance of welcoming new countries into bricks emphasizing its role in fostering fairness on the international stage China supports the inclusion of additional Partners in brics cooperation to help build a more just and balanced

International order ly John stated responding to Malaysia’s bid to join the group Lynn further explained that expanding bricks aligns with global Trends and serves the interests of all members he noted that the expansion contributes to global multipolarity and the democratization of

international relations pointing out the growing interest from developing nations to become part of the block let’s take a quick pause could you do us a favor if you enjoy our content please hit the like button to help help even more leave your thoughts and feedback in the comments your

engagement helps us grow thank you Malaysia’s prime minister anoir Ibrahim recently confirmed that his country has officially applied to join bricks submitting its request to Russia the Block’s current chair Malaysian foreign minister Muhammad Hassan addressing the nation’s Senate

explained that Malaysia’s interest in bricks stems from the economic strength of its member states brics is an informal group that doesn’t require signing treaties we see this block as a beneficial platform given that its members represent a population of over 2 billion people and have

a GDP larger than Assan countries combined Hassan said according to Burma news agency he added that Malaysia is eager to join as long as the doors to new membership remain open Hassan also mentioned that Assan members will consider the implications of individual countries joining bricks if

necessary in addition to Malaysia Thailand has officially expressed its intent to join bricks with the Thai cabinet approving the application to strengthen its economy and enhance its Global standing this aligns with Thailand’s aim to diversify its foreign relations and reduce dependence on

traditional Western allies the block offers a souths South Cooperative framework that Thailand has long aspired to join stated foreign minister Maris sanguna similarly Vietnam has surfaced as a potential Southeast Asian candidate for brics membership having held discussions with Russian and Chinese

officials about its intentions although no official confirmation has been made turkey is another country expressing a strong desire to join bricks driven by its strategic objectives to diversify its International Partnerships and enhance economic collaboration Turkish foreign minister hawan fedan

confirmed this ambition during his visit to China in June 2024 marking the highest level interaction with the brics nation since 2012 turkey’s interest is seen as part of a broader effort to explore new economic platforms amidst stalled EU accession negotiations and tensions with NATO over

various diplomatic and Military concerns Russia has welcomed turkey’s interest indicating that the matter would be discussed at the upcoming bricks Summit let’s now delve into the current state of the bricks from power to economy the recent addition of major fossil fuel producers to the

brics block is poised to influence global oil and gas Markets by encouraging the adoption of alternative currencies a trend referred to as dollarization this shift could potentially undermine

the US Dollar’s long-standing dominance in the energy sector nevertheless Bloomberg economics analysts suggest that the main motivation behind brics’s EXP expansion is more political than economic the broader goal of the expanded group is to establish itself as a strong counterweight to

the G7 Nations which include Canada France Germany Italy Japan the UK and the US the push for a more multi-polar world is not exclusive to Bricks other International organizations such as the organization of the petroleum exporting countries the Shanghai cooperation organization Mosher and the

African Union are also striving for a global order that is less dominated by the United States in the post-cold War era these alliances are collectively working to create a geopolitical environment that represents a broader range of Economic and political interests worldwide trade power of bricks

in 2023 the trade volume within brics countries saw notable growth reaching 42 $22 billion this surge was largely driven by strong economic relationships among member nations with the China Russia partnership standing out as a key contributor trade between China and Russia reached $190 billion in

2022 bolstered by a 20% increase in the first half of 2023 similarly trade between China and Brazil which totaled 165.7 billion in 2022 was supported by Brazil’s exports of soybeans and iron oil or alongside China’s provision of technology and consumer products the bricks expansion in

2024 which brought in Saudi Arabia the UAE Egypt Iran and Ethiopia has significantly bolstered the group’s global economic presence with these new members brics now comprises 29.3% of global GDP amounting to $ 30.8 trillion and represents 46% of the world’s population the addition of

major oil producing countries such as Saudi Arabia and the UAE has had a substantial impact increasing brics’s share of global oil production from 20.4% to 43.1% solidifying the Block’s role as a major player in global energy bold; color: #1a73e8; text-decoration: none;">Markets moreover the expanded bricks group has gained considerable leverage over vital mineral Supply chains with significant reserves of rare Earth elements and other critical minerals the block Now controls roughly 72% of global Rare Earth

production this consolidation of resources could alter global trade patterns and Investment Strategies particularly as countries like China and Russia have previously implemented export restrictions on key materials to safeguard and promote their strategic objectives that’s

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