China Backs Russia-Proposed BRICS Payment System

Gathered Wednesday at a summit in the Russian city of Kazan, the members of BRICS adopted a joint declaration calling for the creation of an independent payment system based on their national currencies, a move in response to what they regard as illegal sanctions that are damaging the global economy.

BRICS member countries, which account for about 35% of the global economy, issued the Kazan Declaration, which calls for the "elimination" of "unilateral economic sanctions and secondary sanctions that are contrary to international law."

The BRICS membership includes the initial five — Brazil, Russia, India, China and South Africa — and expanded when several countries joined this year, including Egypt, Ethiopia, Iran, Saudi Arabia the United Arab Emirates.

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Edward Fishman, senior research scholar at Columbia University and author of the forthcoming book "Chokepoints: American Power in the Age of Economic Warfare," said, "The BRICS have finally found a unifying mission: circumventing American financial dominance."

"For BRICS members under U.S. sanctions, namely Russia and Iran, this mission is already a top national priority," he said. "Others such as China see it as a handy way to insulate themselves from potential sanctions in the future."

Fishman said the United States should take BRICS initiatives "seriously and move to further solidify the dollar's advantages" as they "could well bear fruit over the next decade," although "it's unlikely that any of these initiatives will make a dent in the dollar's global role in the near future."

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