Advances the 17th BRICS summit in July, Russia and China proposed to boost the growth of their member states and launch a new “investment platform” that rivals the Western-led financial system. Presidents of both countries, Vladimir Putin and Xi Jinping, proposed a proposal on Friday focusing on growth in the southern part of the world. The strategic alignment between China and Russia is a new push that drifts out of US dollar and Western domination.
New BRICS “Investment Platform”: What is it? I explained it
The new BRICS investment platform revolves around strengthening ties around technology, education, trade and finance. The proposal could be discussed at upcoming summits where other member states share consensus or differences of opinion. Putin and Jinping stressed that the alliance must invest in the platform, and that amount will be distributed for development.
“We must increase the amount of capital investment.” Putin says on the new BRICS platform platform. He added, “Our country needs to strengthen cooperation in areas such as technology, education, trade and finance.” The two leaders are trying to exchange updates over the phone and make the project come true.
In this way, BRICS members may rely on investment platforms rather than relying on funds from Western-led institutions. If the proposal is accepted by other members, it is likely that more countries will be able to begin using the platform. The move reduces its reliance on the US dollar, the de facto currency from the IMF.
The BRICS Investment Platform may begin issuing local currencies for its members and other countries that boost trade among emerging economies. This could be a financial alternative to Western dominant institutions, and it could be strongly lined up with developing countries and developing countries (LDCs). When all members come together, they are operating financially, so they will have great power.
