The BRICS payment system

G7 vs. BRICS in Global GDP (2024) BRICS Strategic Shift Towards Financial Independence The recent BRICS summit held in Kazan, Russia, brought together leaders from non-Western countries to discuss strategies aimed at reducing reliance on the U.S. dollar and Western financial institutions. This gathering signifies a pivotal moment for BRICS nations as they seek to establish alternative financial systems and enhance their economic sovereignty. Key Discussions and Initiatives 1. Alternative Payment Systems Russian President Vladimir Putin emphasized the urgent need for an alternative global payments system to counteract the U.S. dollar's dominance, which he characterized as a "weapon" in geopolitical conflicts. Notably, he reported that 95% of trade between Russia and China is now conducted in rubles and yuan, reflecting a significant transition towards non-dollar transactions. 2. Member Nation Concerns Concerns were raised by several BRICS members, particularly Brazil and India, regarding the bloc's potential over-reliance on China and the implications of adopting an overtly anti-Western stance. These nations are cautious about how such alignment could affect their own diplomatic and economic interests. 3. De-Dollarization Strategies The summit underscored a collective commitment to advancing de-dollarization strategies, particularly in areas such as foreign exchange reserves and energy trade. With BRICS nations controlling approximately 42% of global central bank foreign exchange reserves, they are strategically positioned to challenge the dollar's longstanding dominance in international finance.Future Prospects 4. New Currency Initiatives Discussions included the exploration of a new reserve currency backed by a basket of BRICS currencies. This initiative aims to further diminish dependency on the U.S. dollar while fostering deeper economic collaboration among member states. However, experts caution that substantial challenges remain before such initiatives can be effectively implemented on a global scale. 5. Digital Currency Projects The BRICS group is actively investigating central bank digital currency (CBDC) projects, such as m-Bridge, designed to enhance cross-border payment mechanisms. While these initiatives may not yield immediate results, they are viewed as strategic long-term investments in financial autonomy for member nations. Key Financial Highlights: Share of Global GDP for G7 and BRICS The BRICS bloc has surpassed the G7 in terms of GDP based on Purchasing Power Parity (PPP), holding a total of 35% of global GDP compared to the G7's 30%. The share of BRICS in global GDP has increased from 10.66% in 1982 to approximately 37.4% in 2023, while the G7's share has declined from 50.42% in 1982 to around 30% in recent years. #BRICSSummit #DeDollarization #GlobalEconomy #AlternativeCurrencies #FinancialIndependence #Putin #Russia #China #India #Brazil #EconomicCooperation #DigitalCurrency #CBDC #GlobalSouth #KazanSummit

India's Export Growth and Strategic Role within BRICS in the Global Market India's export sector has transformed significantly from 2014 to 2024, with exports reaching an estimated $776.68 billion in FY 2023-24, up from $776.40 billion the previous year. This growth has improved India's global ranking among merchandise exporters from 19th to 17th and increased its share of global exports from 1.70% to 1.82%. Key partners include the US, UAE, Netherlands, China, and Bangladesh, reflecting a diversification strategy that mitigates risks associated with over-reliance on single markets. The Ministry of Commerce and Industry and various Export Promotion Councils play crucial roles in facilitating trade. Major export categories include mineral fuels, precious stones, electronics, machinery, and pharmaceuticals. Despite a trade deficit of approximately $78.12 billion in FY 2023-24, India aims to enhance competitiveness through strategic initiatives. Telangana, particularly Hyderabad, has emerged as a vital contributor with IT exports worth ₹2.68 lakh crore ($32 billion) and initiatives like "One-District-One-Product." As part of BRICS, India leverages cooperation for trade growth while navigating complex dynamics with member nations. Disclaimer: This article is authored by Mazhar Pasha, Executive Director at Syndicate Capital. The views expressed herein are personal opinions based on professional insights into India's export dynamics and do not necessarily reflect the official stance of Syndicate Capital or any affiliated organizations. I invite you to read and review my article, "India's Export Growth and Strategic Role within BRICS in the Global Market." Your feedback would be invaluable. Please share your comments and consider following the article for future updates. Thank you! #India #Exports #BRICS #Trade #GlobalMarket #Telangana #Hyderabad #Economy #Pharmaceuticals #ITExports #Manufacturing #TradeBalance #ExportGrowth #GlobalTrade #EconomicDevelopment #Innovation #SyndicateCapital #MazharPasha #MarketDiversification #StrategicPartnerships #UAE #USA #China #Investment #TechnologyTransfer #EmergingEconomies

Russia to Utilize Income from Frozen Western Assets, Says Finance Minister In a strategic counteraction to Western sanctions, Russia plans to leverage the income generated from frozen assets, according to Finance Minister Anton Siluanov. Following the freezing of approximately $300 billion in Russian central bank reserves since the Ukraine conflict escalated in February 2022, Siluanov stated that Russia will mirror the West's actions regarding the utilization of these funds. With significant assets held at Euroclear, including around €197 billion ($213 billion), the U.S. has announced its intention to use proceeds from these frozen reserves to support Ukraine's financial needs. Siluanov emphasized that Russia would similarly allocate income from its own frozen assets for domestic economic needs, asserting that decisions have already been made in this regard. As the G7 countries move forward with plans to utilize Russian assets for a $50 billion loan to Ukraine, tensions continue to rise, with both sides accusing each other of asset theft. The implications of these actions could have lasting effects on international financial relations and trust in the global economic system. #RussiaEconomy #FrozenAssets #WesternSanctions #FinanceMinister #AntonSiluanov #UkraineSupport #G7 #EconomicStrategy #InternationalRelations #AssetUtilization #Euroclear #GlobalEconomy #FinancialImpact #CounterSanctions #CentralBankReserves #EconomicResponse #DomesticNeeds #FinancialTensions #GeopoliticalDynamics #InvestmentRisks #EconomicPolicy #FinancialTrust

IMF Elevates Russia to Fourth-Largest Economy Russia has surged past Japan to claim the fourth spot globally in terms of Purchasing Power Parity (PPP), according to the International Monetary Fund (IMF). This significant leap underscores Russia's robust economic performance despite facing stringent Western sanctions. Key Highlights: PPP Adjustment: The IMF uses PPP to compare economic productivity and standards of living between nations, accounting for variations in the cost of goods and services. GDP Share: With a 3.55% contribution to global GDP via PPP, Russia surpasses Japan's 3.38% share, solidifying its position as the world's fourth-largest economy. BRICS Dominance: Three BRICS countries—China, India, and Russia—are now among the top economies by PPP, reflecting a steady increase in their collective global influence. Sanctions Impact: The shift is attributed partly to Russia's strategic response to Western sanctions, including aggressive import substitution policies aimed at bolstering domestic production. Evgeny Balatsky, head of the Macroeconomic Research Center at the Financial University, notes, "Implementing aggressive import substitution and establishing our own production explains why Russia’s fourth-place ranking is quite predictable". Additionally, Russian Finance Minister Anton Siluanov highlighted the rising share of BRICS countries in global GDP, reaching 36.7% through PPP measurements. "Amid sanctions and economic challenges, Russia's resilience showcases its strategic adaptability, turning obstacles into opportunities for growth and innovation."— Mazhar Pasha, Executive Director at SYNDICATE CAPITAL Conversely, the G7 countries' combined share has declined significantly from 50.42% in 1982 to 29% in 20241.The IMF forecasts Russia's GDP to expand by 3.6% in 2024, up from its initial prediction of 3.2%, although it trimmed its 2025 growth estimate from 1.5% to 1.3% due to anticipated slowdowns in private consumption and investments1. These adjustments underscore ongoing challenges related to labor market dynamics and wage growth. #RussiaEconomy #IMF #PurchasingPowerParity #BRICS #EconomicGrowth #GlobalEconomy #GDP #RussiaVsJapan #FinancialReporting #EconomicForecast #ImportSubstitution #Macroeconomics #MazharPasha #SanctionsImpact #WorldEconomy #EmergingMarkets #EconomicTrends #FinanceNews #InvestmentStrategies #LaborMarket #WageGrowth #EconomicStandards #GlobalGDP #IMFReport #EconomicResilience #FinancialAnalysis

The Unified Payments Interface (UPI) has facilitated over 7 billion transactions worth approximately ₹12 lakh crore ($150 billion) in the 2023-24 fiscal year. With over 400 million users and participation from more than 350 banks, UPI operates under the governance of the National Payments Corporation of India (NPCI) and is regulated by the Reserve Bank of India (RBI), ensuring secure, real-time inter-bank transactions. Instrument Type: Real-Time Payment System Development Entity: National Payments Corporation of India (NPCI) Primary Function: Facilitation of instant, seamless bank-to-bank money transfers via mobile devices 1. Core Components of UPI 1.1 Governing Body National Payments Corporation of India (NPCI): Manages UPI infrastructure, ensuring transaction integrity and interoperability. 1.2 Participating Financial Institutions Banks (Bank-led Model): Authorized banks connect to the UPI network, offering direct account access. 1.3 Payment Service Providers (PSPs) Apps (Google Pay, PhonePe, Paytm): Intermediaries linking users to UPI through member banks. 1.4 Regulatory Authority Reserve Bank of India (RBI): Oversees UPI security, fraud prevention, & compliance with global standards. 2. UPI Structural Framework and Operational Workflow 2.1 User Enrollment Users register through a mobile app (e.g., BHIM) and link bank accounts to create a Virtual Payment Address (VPA), an identifier that substitutes traditional account numbers for privacy. 2.2 Security and Authentication Protocols Multi-Factor Authentication (MFA): Combination of device ID, SIM card, and UPI PIN ensures transaction security, minimizing risk across transactions. 2.3 Transaction Workflow • Initiation: User selects recipient (VPA, account number, or mobile number) and inputs transaction details. • Request Processing: Transaction details are submitted to NPCI for validation. • Verification: NPCI authenticates account balance and authorization with the bank. • Transfer Execution: On validation, funds are transferred between sender’s & recipient’s banks. • Confirmation: Both parties receive real-time notification confirming transaction status. 3. Transaction Categories • Peer-to-Peer (P2P): Transactions between individual users. • Peer-to-Merchant (P2M): Transactions directed to merchant accounts. • QR Code Payments: Facilitated at point-of-sale via QR code scans. 4. Security Framework & Data Integrity • Encryption Standards: UPI adheres to end-to-end encryption (E2EE), Secure Sockets Layer (SSL), and tokenization protocols, aligning with international standards. • Fraud Prevention: Real-time monitoring, managed by NPCI, enhances transaction security and mitigates fraud risk. 5. Interoperability Compliance UPI’s infrastructure supports seamless interoperability among banks & PSPs, providing users with the flexibility to transact across apps & accounts. This adaptability aligns with cross-border operability & standard financial instrument practices. #UPI

BRICS : The New World Order The 134-point Kazan Declaration sets a transformative course for BRICS, emphasizing a multipolar world order and deeper engagement across security, economic reform, and humanitarian priorities. Marking a departure from previous, shorter summit outcomes, this Declaration underscores BRICS’ maturing ambitions for global governance as it embraces a broader mandate. BRICS frames itself as a “laboratory of global governance,” promoting collaborative solutions across economic stability, security, and development. Rather than narrowing its scope, the Declaration signals BRICS’ intent to balance diverse priorities, from trade to strategic stability, boosting the viability of its initiatives. This approach supports the bloc’s growing influence and adaptability in addressing both longstanding and emerging global challenges. In economic reform, BRICS pursues dual goals: advocating reforms in institutions like the IMF while strengthening non-Western structures such as the New Development Bank (NDB) and Contingent Reserve Arrangement (CRA). The Kazan Declaration calls for an inclusive trade environment under the WTO and champions intra-BRICS trade liberalization. Critiquing “unlawful unilateral coercive measures” such as sanctions, BRICS underscores the importance of economic sovereignty for global stability, especially within the Global South. On security, BRICS balances diverse perspectives with nuanced language. Emphasizing peaceful resolution through UN principles, it reaffirms Syrian territorial integrity and addresses the need for cooperation in areas like terrorism. The Declaration reflects BRICS’ commitment to global security and stability while acknowledging the varied political interests within the bloc. Looking forward, BRICS explores financial innovations, such as BRICS Clear and digital currency frameworks, to reduce dependency on dollar transactions and improve connectivity. Infrastructure and logistical advancements are also prioritized, aligning with BRICS’ expanded membership and its aim to fortify economic ties. Importantly, BRICS avoids an anti-Western stance, emphasizing multilateralism over hegemony. The Declaration positions BRICS not as a G7 alternative but as a unique, collaborative model focused on equitable governance for the Global South. As BRICS moves toward the 2024 Summit in Brazil, the Kazan Declaration highlights a shared vision for an inclusive, balanced global order that aligns with its evolving role in the world. #BRICS #KazanDeclaration #GlobalOrder #EconomicReform #BRICS2024 #NewDevelopmentBank #DigitalCurrency #FinancialInnovation #Russia #MazharPasha #SyndicateCapital #India #SecurityAgenda #Multilateralism #EnergySecurity #WTO #GlobalSecurity #DevelopmentAgenda #Hyderabad #Infrastructure #BRICSSummit

Putin Outlines BRICS Growth Strategy with New Investment Platform Advocating Economic Prosperity for the Global South and East Russian President Vladimir Putin has proposed an ambitious investment platform at the 16th BRICS Summit in Kazan, aimed at accelerating economic growth within BRICS nations and extending support to the Global South and East. This initiative, he stated, would drive increased investments in vital sectors like technology, education, trade, and logistics to enable member economies to unlock their full potential. Putin underscored that the platform “would serve as a robust tool, empowering national economies and channeling financial resources to the Global South and East.” The Global South includes countries largely in the Southern Hemisphere, with emerging economies primarily in Africa, Asia, and Latin America. Founded in 2006 by Brazil, Russia, India, and China, with South Africa joining in 2010, BRICS represents about 46% of the global population and over 36% of world GDP. Four new countries—Egypt, Iran, Ethiopia, and the United Arab Emirates—joined this year, while Saudi Arabia actively participates in BRICS initiatives but awaits ratification. Key agenda points at the summit included the classification of ‘partner countries’ and the development of alternative payment systems for inter-member transactions. Russia, holding the rotating BRICS chair, emphasized collaborative growth and economic resilience for all members. #BRICS #Russia #Putin #EconomicGrowth #InvestmentPlatform #GlobalSouth #GlobalEast #Technology #Education #Trade #Logistics #SyndicateCapital #KazanSummit #BRICSSummit #MazharPasha #EmergingMarkets #BRICSMembers #InternationalDevelopment #SouthernHemisphere #LatinAmerica #Africa #Asia #r24tokens #NewEconomy #AlternativePayments #GlobalEconomy #BRICSPower

BRICS rejects ‘illegal’ Western sanctions The measures disrupt the world economy and international trade, the group’s joint declaration states. BRICS has officially condemned Western sanctions, labeling them as "illegal" and detrimental to global trade and economic stability. This stance was articulated in a joint declaration released during the 16th BRICS Summit held in Kazan, Russia. The declaration emphasizes the negative impact of these sanctions on international trade, economic growth, and efforts to achieve sustainable development goals. It asserts that such unilateral measures violate World Trade Organization (WTO) rules and undermine the United Nations Charter. Key Points from the BRICS Declaration Condemnation of Sanctions: The BRICS nations expressed deep concern over "unlawful unilateral coercive measures," which they argue disrupt the world economy and exacerbate poverty and environmental challenges. Call for Elimination: The declaration calls for the elimination of these sanctions, highlighting their disproportionate effects on vulnerable populations and human rights. Economic Cooperation: Despite facing significant Western sanctions, particularly against Russia, BRICS countries are working to deepen their economic ties. This includes discussions on creating alternative payment systems to bypass existing financial restrictions. Broader Context Russian President Vladimir Putin characterized BRICS as a counterbalance to what he described as the West's "perverse methods," which include sanctions and economic manipulation. He argued that these actions lead to new conflicts and exacerbate existing tensions globally. The summit also saw discussions about establishing a trading currency for BRICS nations, aimed at reducing reliance on the US dollar and creating a more independent financial framework. The growing influence of BRICS is seen as part of a broader trend among countries seeking alternatives to Western-dominated global governance structures. This shift is underscored by recent expansions of BRICS membership, which now includes several new countries, enhancing its geopolitical significance. BRICS (Brazil, Russia, India, China, South Africa) holds 31.5% of global GDP, surpassing the G7’s 30.7%. It drives trade, sectoral collaboration in energy, IT, and green economy, and boosts financial stability through the BRICS Interbank Cooperation Mechanism and New Development Bank. Expanded in 2024 with Iran, Saudi Arabia, Egypt, Ethiopia, and UAE, BRICS solidifies its role as a global economic counterbalance, promoting collective influence on the world stage. #BRICS #economy #globaltrade #finance #emergingmarkets #G7 #GDP #PPP #investment #trade #BRICSnations #NewDevelopmentBank #infrastructure #sustainability #interbank #energy #technology #greenfinance #expansion #geopolitics #economicgrowth #globalinfluence #marketaccess #financialstability

The BRICS 100 note, presented by President Putin, symbolizes a unified currency for BRICS nations and aims to be an alternative to the US dollar. President of the Russian Federation Vladimir Putin presented the symbolic currency of BRICS. This banknote representing a unified currency for the member countries of the alliance was unveiled at the summit taking place in Kazan. It is reported that the future currency could serve as an alternative to the dollar. At the same time, Putin stated that Russia does not aim to fight against the dollar but rather to provide another alternative. As of today, BRICS members include Brazil, Egypt, India, Iran, China, the UAE, Russia, Ethiopia, and South Africa. It is noteworthy that a rejection of the dollar by BRICS countries could lead to serious consequences for the American currency. The BRICS payment system #mazharpasha #brics #bricssummit2024 #brics #summit #russia #brazil #egypt #ethiopia #india #iran #china #uae #southafrica #usa #syndicatecapital #imf #worldbank #usd #euro #currency #world

The BRICS Payment System at BRICS 2024 Summit At the 16th BRICS Summit in Kazan, Russia, a major focus has been the development of the BRICS payment system, aimed at reducing reliance on the US dollar in international trade. This system represents a significant step toward de-dollarization, as BRICS countries explore alternative payment mechanisms to facilitate smoother and more secure trade among members. Key Features of the BRICS Payment System: De-dollarization: A concerted effort by BRICS nations to lessen their dependence on the US dollar, promoting greater financial autonomy. Cross-border payments: The system will enable efficient and secure cross-border transactions between BRICS members, streamlining trade processes. Currency swaps: Countries will have the option to use local currencies, enhancing liquidity and reducing exposure to exchange rate fluctuations. BRICS Expansion and Payment Integration With nearly 30 countries expressing interest in joining or deepening ties with BRICS, the payment system is expected to play a crucial role in uniting economies under a more inclusive and diversified financial structure. Nations like Saudi Arabia, which are awaiting full membership, are likely to integrate into this system, strengthening BRICS’ collective influence. Diplomatic and Economic Discussions The summit also saw high-level talks between leaders, including Russian President Vladimir Putin and Iranian President Pezeshkian, further highlighting the importance of strategic economic security and multilateral financial cooperation. Key topics included mutual trade, the global economy, and geopolitical issues, alongside the BRICS payment system's potential to enhance economic sovereignty. For more information on the BRICS payment system, connect on WhatsApp +91 9059910780. #BRICS2024 #GlobalEconomy #BRICSPaymentSystem #DeDollarization #BRICSExpansion #EmergingMarkets #BRICSDiplomacy #Multilateralism #GlobalSouth #BRICSPower #BRICSReforms #MazharPasha #SyndicateCapital #BRICSImpact