BRICS Discuss Alternative Payment Network to US Dollar SWIFT System

Cumulative BRICS Member Trade Volume in China Up 12% to 1.3 Trillion Yuan in May
China Emphasizes Urgent Need for Cooperation Among BRICS Members Amid US Hegemony Chaos

[Asia Economy Beijing=Special Correspondent Jo Young-shin] As attention focuses on the agenda of the "14th BRICS Summit" hosted by China on the 23rd, there are prospects within China that progress may be made in discussions on a separate payment network to replace the Society for Worldwide Interbank Financial Telecommunication (SWIFT).

[Image source=Yonhap News]

The state-run Global Times reported on the 22nd that since the COVID-19 pandemic, BRICS member countries could lead global economic growth momentum, and China is actively supporting the expansion of BRICS membership.

The media especially noted that as concerns over the weaponization of the US dollar grow, many countries want to use their own currencies for trade settlements, and it is expected that discussions on establishing a SWIFT alternative payment network could advance at this meeting. China has been striving to internationalize the yuan and expand the China International Payment System (CIPS).

The Global Times cited the increase in trade between Russia and India as an example. It reported that trade between the two countries has significantly increased, with Russia recently becoming India's second-largest crude oil supplier. It added that India, which imported 100,000 barrels per day in February, imported 870,000 barrels per day in May.

The reason Chinese media used India as an example is that although India participates in the security consultative body Quad (United States, Japan, Australia, India), it has shown a lukewarm response to sanctions against Russia. China expects that at least on economic matters, India will take a different path from the United States.

Xinhua News Agency pointed out that from January to May this year, trade volume between China and BRICS member countries increased by 12.1% year-on-year to 1.3 trillion yuan (approximately 251.108 trillion Korean won), noting that China and BRICS member countries have mutually complementary economic structures. By country, trade with Russia was the highest at 419.8 billion yuan (26.5% increase), followed by Brazil at 415 billion yuan (7.3% increase), India at 344.3 billion yuan (10% increase), and South Africa at 128.7 billion yuan (5% decrease). It added that machinery and electrical products, energy, agricultural products, and metal minerals are major traded items among member countries.

Chinese media argued that BRICS is a massive economic bloc accounting for 40% of the world's population and 24% of global GDP, and with escalating geopolitical tensions and increasing chaos due to US hegemony, cooperation among BRICS member countries is urgently needed.