Dedollarization Update: BRICS+ & EAEU
Meeting with Chairman of the Board of the Eurasian Economic Commission Bakytzhan Sagintayev. On the Russian side, Deputy Prime Minister Alexei Overchuk and Presidential Aide Yury Ushakov
Chairman of the Board of the Eurasian Economic Commission Bakytzhan Sagintayev of Kazakhstan.
At the beginning of the year there was much speculation on how far the progress would get on establishing a new international digital financial clearing mechanism that would operate in digital currencies, and if it would be introduced at the BRICS+ Summit in Kazan this August. Many of the small initial steps in this process have or are occurring. This is one of the key meetings between EAEU and BRICS+ on this project while the SCO lurks in the wings. The key portion of what we’re provided of this meeting is said by Putin after Mr. Sagintayev’s abridged remarks :
B. Sagintayev: Yes, but nevertheless we are carrying out this work. Our bankers and national central banks are doing a good job here. The Central Bank of Russia has already launched a digital ruble, the Kazakh National Bank has already launched a digital tenge, and in the future we are already working to switch to digital money, taking into account everything that is happening in geopolitics.
My colleagues and I even discussed how to try out some types of products in digital currency. The work continues here, and at the Alma-Ata meeting of Prime Ministers. And before that, a digital forum was held. We said there that our vision will soon be presented – specifically on the digital agenda-to the prime ministers, and then we will go to the heads of state for approval.
A lot of work is being done, because in the digital age, our people, businesses, the population, and society are asking that all issues be solved digitally within the framework of the principles of the four freedoms….
Vladimir Putin: Bakytzhan Abdirovich, I have a request for you. Russia holds the BRICS presidency this year. Our other countries are not members of this association, but the opportunities there are great, and I mean the plans of our Chinese friends, "One Belt, One Road". We keep saying that these are compatible projects: our [project] of Eurasian development and China. The BRICS leaders are coming to Kazan, and I would like to ask you to see and work with our Russian colleagues on how we can integrate the economies of other BRICS countries into our joint work with the BRICS countries. There can be a lot of interesting projects and areas of development in general.
You were talking about financial calculations. There's a lot to talk about here. Many people are interested in setting up this system of payments in national currencies so that it functions as a separate, modern, new, high-tech settlement center between a sufficiently large number of countries. And it can be done. This can be a very promising area. Just like the operation of financial and banking systems.
As you know, we have created the BRICS Bank within the framework of this association, and there are also all sorts of ideas on how to expand its work and functionality. And it would be great if we offered our colleagues some things on behalf of Russia, but taking into account the interests of the member countries of our organization. Because, of course, we seek to coordinate any steps in these areas with all the participants of the Eurasian Economic Community and, accordingly, of course, with your position, with the position of the Commission, we could prepare joint proposals.
It would be interesting for everyone. All countries: Russia, Kazakhstan, Belarus – all cooperate with the BRICS member countries in one way or another. And if we could suggest some things to our colleagues, we will talk about it in more detail now. I have some ideas, especially if they were presented so far as our joint steps, this could have good prospects.
B. Sagintayev: Mr President, we will address these issues.
This project is “very promising;” I’d say so. The shifting of the global economy to one based on commerce and development teamed with a financial system that’s essentially public because national and supportive of projects as financial engineers instead of parasites is what’s being talked about here. The above is the germ and it’s growing fast. The next step will be to get ASEAN to join. Africa plugs in. And Latin America completes the team. And how will the West justify being against this sort of organizing? It’s more in-line with International Law and a tool for people to advance themselves. IMO, this whole project makes great social & business sense, which makes it good political sense.
This meeting follows the BRICS+ Finance Ministers Summit at the end of February in Rio that was reported about at the Gym. The hints then were trials coming soon. IMO, they’re farther along than we know. The really big deal is what this will do for development financing. Debt and deficit spending can still be used as tools in prudent amounts as we’re seeing in Russia and China. Another bonus is the system will be public as in nationalized within its participants, although there’ll be opportunities for private capital to use the system. I’m sure many will want to know how the oversight process will be performed. Future meetings ought to give us further glimpses of how this project’s progressing.