Strategic session on monetary and financial cooperation of the world's majority countries in Moscow
On April 10, a strategic session on monetary and financial cooperation between the world's majority countries was held at the Higher School of Economics. The event is organized by the BRICS Expert Council. The main expert at the session was Ali Benouari, who previously served as Minister of Treasury and expert of the Committee on Public Debt of Algeria, now Advisor to the Ministers of Finance and Economy of Algeria. The moderator was Vladimir Zuev, Head of the working group "Economic Cooperation, Trade, Infrastructure and Energy" of the BRICS Expert Council, Head of the Department of Trade Policy at the HSE Institute of Trade.
The globalization of finance, backed by the US dollar, has led to reduced transparency and less effective market discipline. The established system dictates its own rules to the rest of the countries, and failure to comply with them has serious consequences.
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The dollar has become a toxic product. Anyone with dollars in their pocket has problems. In 1971, the gold standard was abolished. The Americans realized that they had violated the treaty, and in 1973 they offered Saudi Arabia to sell oil for dollars. This is how petrodollars appeared, which became the main currency for the sale of raw materials.
Ali Benuari
Advisor to the Ministers of Finance and Economy of Algeria
The dollar is a powerful force, the expert added.
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If someone wants to abandon the dollar, then the Americans have an army and the CIA, whose budgets are larger than those of some African countries. That's why Americans impose their currency by force, I call it a curse and a toxic product.
Ali Benuari
Advisor to the Ministers of Finance and Economy of Algeria
During the strategic session, such important topics were raised as the possibility of mitigating the risks of the loan portfolio for the BRICS countries, expanding the association, increasing the share of national currencies in mutual settlements between the participating countries, as well as the creation of a new financial system.
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A new global monetary order is emerging
Ali Benuari
Advisor to the Ministers of Finance and Economy of Algeria
Vladimir Zuev, Head of the working group "Economic Cooperation, Trade, Infrastructure and Energy" of the BRICS Expert Council, Head of the Department of Trade Policy at the HSE Institute of Trade, Ali Benouari, Advisor to the Ministers of Finance and Economy of Algeria
As Ali Benuari noted, the main goal today is the reform of the international monetary system, which is now totalitarian. Russia and China, according to the speaker, can force the West to move to a new, alternative order, and many countries will follow the BRICS. The development of BRICS is an opportunity to defend itself from American hegemony, the expert believes. He also shared that the creation of the BRICS currency includes the creation of an analogue of the SWIFT system.
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It is necessary that this system meets the needs of the main BRICS players — Russia and China. This will create a new international monetary order and withdraw from the financing of the World Bank.
Ali Benuari
Advisor to the Ministers of Finance and Economy of Algeria
The global process of de-dollarization is already underway, Ali Benuari believes. According to him, confidence in the dollar was undermined not only by its militarization, but also by the imposition of sanctions against various countries. As an example, the expert cited sanctions against Cuba, imposed in the 1960s, and sanctions against Russia.
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The Americans have it simple: they don't like someone, they impose sanctions. Therefore, more and more countries are switching to settlements in national currencies, and the BRICS association is expanding. BRICS has surpassed the G7 in terms of economic potential. No one could have believed before that the G7, which used to dictate the world order, is now inferior to the BRICS in terms of population and GDP per capita. The more the BRICS expands, the more the balance of power goes in its favor.
Ali Benuari
Advisor to the Ministers of Finance and Economy of Algeria
Irina Yarygina, Head of the working group "Financial Cooperation and the International Monetary and Financial System" of the BRICS Expert Council, Head of the Department of Economics and Banking at the MGIMO Institute of Energy Policy and Diplomacy of the Ministry of Foreign Affairs of Russia; Professor at the Financial University under the Government of the Russian Federation
For structural reform of the international financial system that meets the interests of fair and equitable development, Ali Benuari suggests that the BRICS member countries switch to SDR, a neutral financial unit issued by the IMF and listed on international stock exchanges. The SDR will be able to become a single standard, thanks to which it will be possible to effectively develop the financial policy of the BRICS countries, making it truly sovereign.
A number of expert economists and representatives of the academic community who attended the strategic session presented their proposals on the development of international monetary and financial cooperation within the framework of BRICS and the World Majority countries. In particular, proposals were made on the formation of a common securities market in the BRICS countries, joint measures to combat inflation and the introduction of advanced financial and technological solutions such as cryptocurrency.
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The strategic session was held within the framework of the work of the BRICS Expert Council, established in accordance with the instructions of the Government of the Russian Federation on the basis of the Higher School of Economics on the initiative of the Ministry of Foreign Affairs and the Ministry of Finance of Russia. The Council is responsible for information, analytical and expert support for the Russian BRICS presidency in 2024, and is also engaged in expert, analytical and scientific activities on topical issues of political, socio-economic and humanitarian cooperation in the association.
Victoria Panova
Head of the BRICS Expert Council, Vice Rector of the Higher School of Economics