Putin calls on BRICS nations to increase use of national currencies in trade

Published time: 28 Jun, 2019 10:11

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A general view of Kwai Tsing Container Terminals for transporting shipping containers in Hong Kong © Reuters / Bobby Yip

Russian President Vladimir Putin has called on Brazil, Russia, India, China and South Africa (BRICS) to develop settlements in national currencies instead of the commonly used currencies like the US dollar.

“Cooperation in terms of developing the use of our national currencies in international settlements seems very promising,” Putin said in Osaka, Japan at a meeting of BRICS leaders in advance of the G20 summit.

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Five-nation bloc BRICS represents more than 40 percent of the world’s population. The five countries have a combined nominal GDP of US$18.6 trillion, which is about 23 percent of the gross world product.

According to International Monetary Fund estimates, member states are responsible for more than half of the global economic growth of the last 10 years.

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According to the Russian president, the integration of payments systems and the establishment of an independent channel on information exchange could facilitate the stability of the banking systems of the five countries. “I think this is extremely important today,” he said.

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Russia welcomes further expansion of the operating activities of the BRICS New Development Bank (NDB), which has already financed 35 investment projects worth more than $9 billion, Putin said.

The Shanghai-based bank NDB provides funding for infrastructure and sustainable development projects in emerging economies. It was established in 2014 and formally opened for business a year later.