After the Chinese side confirmed its participation, there was good news from within the BRICS. India is trying to go bankrupt, and Professor Mei told the truth. With the Kazan summit just around the corner, what good news is coming out of the BRICS? Regarding the global economic situation, what kind of statement have US experts made?
On October 10, local time, Russian presidential assistant Ushakov revealed the preparations for the Kazan summit of BRICS leaders. He said that Russia has sent 38 invitations to BRICS member states and those countries that want to cooperate with BRICS, of which 32 countries have already confirmed their participation.
In the context of the continuous escalation of the conflict between Russia and Ukraine and the tightening of the blockade of Russia's economic and diplomatic activities by Western countries, the more than 30 countries invited to attend the Kazan summit have undoubtedly created opportunities for Russia to break out of the encirclement and expand its influence. In early September, Chinese Foreign Minister Wang Yi revealed that the Chinese leader had accepted the invitation and would attend the Kazan summit as scheduled. Wang Yi pointed out that the heads of state of China and Russia will continue to deepen strategic discussions and promote the sound and steady development of the China-Russia comprehensive strategic partnership for a new era.
For China and Russia, the Kazan summit to be held in two weeks is undoubtedly a good opportunity to enhance exchanges and deepen bilateral cooperation. However, for India, which has been creating "noise" within the BRICS, the situation is less optimistic. The reason why I say this is because Russian Finance Minister Siluanov announced a "good news" on the 9th - the BRICS countries are expected to develop and build a new international payment system to achieve faster, cheaper, and undisturbed foreign trade transactions.
Against the backdrop of the declining hegemony of the dollar and the wave of "de-dollarization" sweeping the world, the initiative submitted by the Russian side on the establishment of a BRICS payment system is undoubtedly very important. It is also a good thing for BRICS members to gradually get rid of the dominance of the dollar and develop foreign trade.
However, the India government has imposed conditions on the settlement mechanism. According to India media reports, the Indian side wants to include the India currency rupee in the BRICS payment system, but it has been "firmly opposed" by China and Russia and other countries. Some analysts believe that the reason why India's request was rejected is likely to be related to the previous request made by the Modi government.
Previously, New Delhi refused to accept the "rupee-yuan" settlement model, and also claimed that the Indian side must have the right to "exclude China" and settle in local currencies with other BRICS members. This means that the Indian side wants to exclude the renminbi from the settlement system, so as to achieve the goal of curbing China's development speed. However, the rupee is too illiquid and not very valuable, and it is not widely accepted by the international community. Especially at a time when Russia is desperate to get rid of SWIFT sanctions, an independent and authoritative payment and settlement system is what all parties need most.
It is worth mentioning that while the BRICS countries are seeking to establish a "de-dollarization" payment system while the India "attempt" to go bankrupt, a United States economist tells the truth, that is, the dollar today has been reduced to an "aggressive policy tool". Jeffrey · Sachs, a professor at Colombia University in United States and a famous economist, said on the 10th that countries need an alternative to the dollar payment mechanism, unless the United States government can "restore its senses" to stop unilateral sanctions and stop "weaponizing" the dollar.
Since the outbreak of the Russia-Ukraine conflict, United States has taken the lead in seizing and freezing hundreds of billions of dollars in Russia assets, and in this case, the American professor's concern is warranted. Sachs pointed out that the abuse of "dollar hegemony" and unilateral sanctions will only make more and more countries seek to use non-dollar currencies for settlement, which is not a good thing for United States, because all countries want is a fairer and safer payment system.