By John Meyer, business and finance consultant – Eurasia Business News, November 28, 2022

The Eurasian Economic Commission (EEC) proposed to create an independent payment system for the BRICS countries and the Eurasian Economic Union (EAEU) with a common payment card. Such a system would be able to unite the national systems of China (Union Pay), India (RuPay), Brazil (Elo), the EAEU countries (Mir, Belcard, etc.), reported local sources in Moscow.

The proposal was voiced by the Adviser to the Chairman of the EEC Board Vladimir Kovalev. The press service of the EEC said that the EAEU is working on the creation of a common financial market. In particular, one of the main directions is to build a common exchange space, and the corresponding roadmap is already being implemented. “It is planned to establish a supranational body to regulate the financial market,” added the press service of the EEC.

In 2021, the member states of the Eurasian Union concluded an agreement regulating the exchange of information on credit histories. By 2025, they plan to create conditions for the free movement of capital and the provision of financial services in the EAEU.

The EAEU includes Russia, Armenia, Belarus, Kazakhstan, Kyrgyzstan. The BRICS include Russia, Brazil, India, China and South Africa. Algeria filed an official application to join the BRICS on November 8. Other emerging powers like Turkey, Argentina, Egypt, Saudi Arabia are also interested to join this association.

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In June, the Russian President Vladimir Putin said that the issue of creating an international reserve currency based on a basket of currencies of the BRICS countries was being worked out. He said that Russia, together with its BRICS partners, is also developing new mechanisms for international payments.

By November, in six of the nine countries in which the Russian payment system Mir operated, banks stopped servicing it amid the threat of U.S. sanctions. In recent months, banks in Armenia, Vietnam and Kazakhstan, Kyrgyzstan, Tajikistan, Turkey, Uzbekistan have stopped servicing operations through Mir.

Turkish state bank Ziraat Bank stopped in September using the Russian payment system “Mir” and no longer serves its cards, reported Reuters with reference to the CEO of the bank Alpaslan Cakar. Earlier, information that the state banks of Turkey, following the private ones, abandoned the Mir system, appeared in the media, but there was no official confirmation.

In early August, Turkish President Recep Tayyip Erdogan said that during talks on August 5 with Russian President Vladimir Putin in Sochi, an agreement was reached on the payment in rubles of trade between the two countries. In particular, it is planned to increase the turnover of bilateral trade to $100 billion. The Turkish president added that there is “serious progress” in implementing the recognition of the Russian Mir bank card by Turkish banks.

The exchange rate of dollar/ruble now is : 1.00 dollar for 61.53 rubles.

The exchange rate of euro/dollar now is : 1.00 euro for 1.03 dollar.

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