BRICS Intra-bank Payment System Launched: What next?
BRICS Intra-bank Payment System Launched: What next?
Fastepo: 7-7-2024
Russia and Iran, as two BRICS members, have finalized the integration of their national payment systems, a significant step toward enhancing their economic cooperation and circumventing U.S. sanctions.
The heads of the central banks from both nations have been working closely to link Iran's SEPAM system with Russia's System for Transfer of Financial Messages (SPFS).
This integration will allow the two countries to conduct trade and financial transactions using their national currencies, the ruble and rial, reducing their reliance on the U.S. dollar and the Western-dominated SWIFT system.
The new system will enable Iranian and Russian banks to issue and accept each other's bank cards, facilitating smoother transactions for businesses and individuals in both countries.
This move is seen as a strategic effort by both nations to mitigate the impact of international sanctions and strengthen their economic ties.
Russia, heavily sanctioned due to its invasion of Ukraine, and Iran, facing long-standing sanctions related to its nuclear program and other issues, are increasingly collaborating to build financial infrastructure independent of Western influence.
The first trade transactions using this new system have already taken place, and both countries are optimistic about the potential to significantly increase their annual bilateral trade, aiming to double it from $4 billion to $8 billion.
This integration is part of a broader effort to create a more resilient and self-sufficient economic partnership between Russia and Iran, further solidifying their alliance against Western economic pressures.