Vladmir Putin for creating parallel SWIFT system to break U.S. dollar dominance

BRICS explores digital currencies, SWIFT alternative to counter U.S. dollar dominance, with new members joining the economic bloc.

Russian President Vladimir Putin has said the multi-nation Brazil, Russia, India, China, and South Africa (BRICS) group should explore a SWIFT-like cross-border payments system immune to Western sanctions as well as use national digital currencies in financing investment projects to end U.S. dollar dominance.

Ahead of the 16th annual summit of leaders of BRICS to be hosted by Russia, Mr. Putin also said the time has not come yet for a common BRICS currency but added that the 10-nation bloc is exploring the use of digital currencies for which his country is working with India and other nations.

Russia, which was slapped with sweeping sanctions by the U.S. and its allies in the aftermath of the conflict with Ukraine that erupted in February 2022, wants to circumvent the global financial system by creating a new payments system based on a network of commercial banks linked to each other through the BRICS central banks.

“Advocating a cautious approach in creating a new reserve currency due to differences in the structure and quality of the economies of the BRICS member states,” Mr. Putin said these countries should focus on the use of the national currencies, new financial instruments and the creation of an analogue of SWIFT.

Prime Minister Narendra Modi is scheduled to attend the summit in the Tatarstan city of Kazan on October 22 and 23.

It will also be the first ever summit of the grouping after its expansion with the entry of Egypt, Ethiopia, Iran, Saudi Arabia and the United Arab Emirates (UAE). Brazil, Russia, India, China and South Africa are the original members of the BRICS.

“At this point of time it (a BRICS currency) is a long-term prospect. It is not under consideration. BRICS will be cautious and act gradually, move slowly. The time has not come yet,” Mr. Putin told a select group of senior editors from the BRICS member states at a media interaction on Friday at his official residence in Novo-Ogaryovo, about 50 km from Moscow.