BRICS Is Changing the Game: Guarantee Mechanism and Own Cross-Border Payment System That Will Shake the West!
Imagine a world where the biggest powers of the Global South no longer wait for Western permission! That’s exactly what’s happening at the BRICS summit in Rio de Janeiro on July 6, 2023. The leaders of BRICS countries – Brazil, Russia, India, China, and South Africa – agreed to launch a pilot project for a joint guarantee mechanism. The goal? To boost strategic investments in Global South countries without relying on Western financial institutions.
What’s the guarantee mechanism and why is it a bombshell?
The guarantee mechanism acts like a financial shield for investors. It guarantees investment security, meaning BRICS countries can attract more capital for development. And not just any capital – strategic capital that can change the economic landscape of entire regions.
Even crazier – this mechanism will be developed through the New Development Bank (NDB), but without additional capital contributions from shareholders! So, it will use existing resources and international experience, with results expected at the next BRICS summit in 2024.
What about payments?
BRICS isn’t stopping there. They plan to create their own cross-border payment system! Yes, you read that right. A system that will allow direct transactions between member countries, bypassing traditional Western financial networks like SWIFT. This is a direct hit on the dominance of the dollar and Western banks.
Why is this a big deal?
Imagine how much money flows through global financial channels every year. Now imagine a chunk of that money rerouted through the BRICS system, which is faster, cheaper, and independent of Western sanctions and policies. It’s like building a highway that avoids traffic jams and tolls on old routes.
What do diplomats say?
Brazil’s ambassador to Serbia, José Mauro Fonseca Costa Couto, emphasizes that BRICS promotes peaceful and fair negotiations, respecting international law and fighting against violent and illegal actions. So, it’s not just about economics – it’s a political movement aiming to redefine global power.
Putin and BRICS – a game-changing video call
Russian President Vladimir Putin won’t be in Rio de Janeiro in person but will address the summit via video link. Symbolic, isn’t it? Russia, under Western sanctions, shows it can participate and lead global initiatives from the shadows while the West loses control.
What’s next?
The next BRICS summit in 2024 will be crucial. That’s when the first results of the guarantee mechanism and payment system will be revealed. If all goes as planned, the world of finance and geopolitics won’t be the same.
Conclusion: Is the West losing the battle?
While the West still holds a monopoly on global finance, BRICS countries are slowly but surely building parallel structures that could flip the game. This isn’t just an economic story – it’s the start of a new era where power shifts from West to East.
If you think this is just another diplomatic story, think again. This is a financial revolution in the making. So, what do you think? Ready for a world without the dollar as the main currency? Or will the West adapt and keep its dominance? Drop your thoughts, let the people’s voice be heard!
