Russia on Wednesday proposed the creation of a BRICS grain exchange, which could be later used as means to trade other major commodities.
At the 16th BRICS summit in Russia on Wednesday, President Vladimir Putin said a grain exchange would help protect nations in the group and countries in the global south from excessive price volatility.
Putin said at the summit:
BRICS countries are among the world’s largest producers of grains, legumes, and oilseeds. In this regard, we proposed opening a BRICS grain exchange.
Fair and predictable price indicators
Putin said on Wednesday that the formation of a grain exchange would contribute to creating a stable market.
The exchange “will contribute to the formation of fair and predictable price indicators for products and raw materials, considering its special role in ensuring food security.”
Additionally, Putin said that the implementation of such an exchange would also help protect the national markets of countries within the group from external interference.
Putin further said that it will safeguard markets from excessive speculation and attempts at creating an artificial food shortage.
Putin said that a separate exchange could be formalised where precious metals such as gold and silver, and diamonds could be traded for the BRICS nation.
BRICS average economic growth to surpass global growth
Putin in his address on Wednesday also said that the combined economic growth of BRICS nations in 2024-25 would be higher than global economic growth.
BRICS’ average economic growth in 2024-25 would be 3.8% compared to global growth of 3.2-3.3%, Putin said.
“The trend for the BRICS’ leading role in the global economy will only strengthen,” Putin said, citing population growth, urbanization, capital accumulation, and productivity growth as key factors.
Cross-border payments system
Meanwhile, other leaders in the BRICS group backed the creation of a cross-border payments system.
The cross-border payments system could help BRICS nations to trade with each other, bypassing the dollar-denominated payment system at present.
Brazilian President Luiz Inacio Lula da Silva said that an alternative payment system is crucial for the BRICS nations.
He also said that the group’s National Development Bank was designed as an alternative to the International Monetary Fund.
India’s Prime Minister Narendra Modi said during the summit on Wednesday that he was in favour of financial integration of the BRICS nations.
Furthermore, China’s President Xi Jinping also urged countries within BRICS to deepen financial and economic cooperation.
In his speech, Putin also called for the creation of a BRICS investment platform, which will facilitate mutual investment between BRICS countries and could also be used for investment in other countries in the Global South, according to a Reuters report.
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