During a closed-door meeting at the BRICS leaders’ summit in Kazan on October 23, 2024, Brazilian President Luiz Inacio Lula da Silva called for the establishment of a unified financial system among BRICS nations. He emphasized the necessity of creating “alternative monetary relations” among member countries, asserting that this issue requires serious discussion.
President Lula stated that, “We need to create a financial system. This issue needs to be seriously discussed.”
His remarks reflect a growing sentiment among BRICS leaders to reduce dependency on Western financial systems and explore more collaborative economic frameworks.
Egyptian President Abdel Fattah el-Sisi also contributed to the discussion, advocating for financial settlements in national currencies within BRICS. He highlighted Egypt’s commitment to this transition and its importance in fostering joint ventures across various sectors with other BRICS nations.
He affirmed the significance of advancing cooperation frameworks, particularly in financial settlements using local currencies, to enhance economic relationships among member states.
The push for a unified financial system comes amid increasing geopolitical tensions and dissatisfaction with Western hegemony. BRICS, which originally included Brazil, Russia, India, China, and South Africa, has expanded to include new members such as Egypt, Ethiopia, Iran, and the UAE.
The leaders at the summit agreed to strengthen trade and financial settlements in local currencies and explore the feasibility of establishing an independent cross-border settlement infrastructure. This initiative aims to minimize reliance on the U.S. dollar and enhance economic sovereignty.
The discussions at the summit signal a pivotal moment for BRICS as it seeks to establish itself as a counterbalance to Western-dominated financial systems. The emphasis on local currency transactions and cooperative economic strategies could lead to significant shifts in global trade dynamics.
If successful, these initiatives may pave the way for a more multipolar world economy, allowing BRICS nations to exert greater influence over international financial systems and reduce vulnerabilities associated with dollar dependency.