this post was submitted on 24 Oct 2024
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[–] zante@slrpnk.net 3 points 7 hours ago (1 children)

How will this be any worse on BRICS Clear than it currently is on Swift ?

[–] partial_accumen@lemmy.world 1 points 1 hour ago* (last edited 1 hour ago)

How will this be any worse on BRICS Clear than it currently is on Swift ?

Lets say you're Egypt selling cotton to Russia. BRICS Clear is pushing local currencies. So Russia wants to pay for the Egyptian cotton in Russian Rubles. Lets say the amount of Rubles would buy 10,000 barrels of crude oil at the time of settlement. Russia is currently in economic dire straights and the currency value is dropping. When Egypt wants to spend its Rubles, if it can find a country willing to take them, it could only buy 5,000 barrels of crude oil.

How eager will Egypt be to settle another transaction in BRICS Clear when the value can evaporate. This is way international trade wants to settle in stable currencies.