BRICS Summit highlights. Johannesburg Aug. 22 - 24.

🔹Argentina🇦🇷, Egypt 🇪🇬, the UAE 🇦🇪, Saudi Arabia 🇸🇦, Iran 🇮🇷 and Ethiopia 🇪🇹 will become full-members on Jan. 1, 2024, (the first day of Russia's presidency of BRICS). More than 20 countries have applied to join BRICS as Algeria 🇩🇿 and Indonesia 🇮🇩 are proposed to be the next future members. BRICS will develop a BRICS partner country model for even further expansion.

🔹Member states finance ministries & central banks to consider the possibility of launching national currencies-based payment instruments and platforms. BRICS Payment Task Force to begin study of members cross-border payments systems.

🔹Russia’s Ministry of Economic Development does not expect any "quick breakthroughs" in the creation of a common currency of the BRICS 🇧🇷🇷🇺🇮🇳🇨🇳🇿🇦 nations. There could be, agreements on a basket of local currencies and payment systems so BRICS nations can pay each other based on a set of solutions comparing currency rates.

🔹However, the Russian 🇷🇺 Finance Ministry is discussing the possibility of a unit of account for the BRICS member countries. Not a single currency like in the EU but an alternative to the dollar 💵.

🔹The BRICS Summit declaration states they are in favor of UN 🇺🇳 reform and vow support for the expansion of the developing countries' representation in the UN Security Council. It also cites reforming the WTO and Bretton Woods financial institutions, including the IMF.

🔹India 🇮🇳 offers BRICS countries to establish a space research consortium as they already work on work on a satellite group of BRICS states.

🔹Vietnam will join ASEAN members Indonesia, Malaysia, Thailand, the Philippines and Singapore to establish cross-border payments mechanisms through the Regional Payment Connectivity (RPC) initiative. Indonesia, Malaysia and Thailand have agreed to later facilitate cross-border transactions for financial assets like equities and government bonds in local currencies.

🔹These countries have a mandate to include other ASEAN 🇧🇳 🇰🇭 🇮🇩 🇱🇦🇲🇾 🇲🇲 🇵🇭 🇸🇬 🇹🇭 🇻🇳 members in the RPC initiative. Vietnam's financial authority in charge of domestic payment systems is currently in talks with the local industry to agree on a national QR system for 'instant' retail payments.

🔹Last month, Russia 🇷🇺, (meeting with ASEAN) called for starting consultations on the use of national currencies in mutual payments with ASEAN countries to bypass USD 💵 denominated transactions.

🔹ASEAN member Indonesia plan to use local currencies in bilateral trade with India 🇮🇳. In May, South Korea 🇰🇷 and Indonesia 🇮🇩 signed a MoU to cooperate on promoting the use of their currencies for bilateral transactions. The Bank of Indonesia is working on its own domestic card payment system as part of a strategy to reduce dependency on foreign systems and protect transactions from geopolitical fallout.

🔹Last November, an official meeting of all ASEAN nations' Finance Ministers & Central Bank Governors was held to discuss reduced dependence on the US Dollar, Euro, Yen, and British Pound from financial transactions and move to settlements in local currencies.

Video source - Bank Indonesia