Due to Western anti-Russian sanctions, Türkiye suggested that Russia use the clearing system for business transactions and bilateral trade. Such a suggestion will not only harmonize Türkiye and Russia but also open up economic cooperation among the BRICS countries, thus creating an atmosphere conducive to the resolution of interbank issues. I think this initiative, represented by Türkiye in this respect, is a major step toward rethinking our global economic frameworks.
The proposal by Turkish President Recep Tayyip Erdogan during his recent meeting with Russian President Vladimir Putin at the Kazan BRICS summit marks an important change in how countries are gradually learning to manage the economic impacts of geopolitical tensions. Sanctions by the West have stemmed much of Russia’s access to the financial systems of the world, and so when Türkiye proposed the idea of a clearing system, already in use in countries like Iran and Venezuela, it was prudent and practical to accommodate trade. In reality, it is a clearing system that is akin to an exchange or swap arrangement. The country merely lists its export goods, and the payment is processed through accredited banks of that particular country. An approach like this will allow both Türkiye and Russia to economically engage each other without external pressures impeding their ways.
More importantly, such consolidation within BRICS might have deep institutional changes within the interbank settlement. Banking consultants argue that only when the BRICS nations establish their correspondent banks and establish their own payment systems, sort of a SWIFT alternative itself can they rebirth their economic relationship. Because the US dollar remains the largest reserve currency this shall become crucial in streamlining this transformation for such countries to ease their trade and payment problems. By encouraging an independent financial architecture, BRICS can avoid the risks of a biased dependency on Western financial systems that can regulate things in arbitrary ways.
The fact that more than two nations are participating in this Turkish initiative—specifically, Russia and Türkiye—means that BRICS has a chance to strengthen its unity and influence in the international economy. Türkiye would like to have a greater role in BRICS through this due to its strategic location and ever-growing economic ambitions. By using this same portal, Türkiye hopes to move on from its limited options better and more assertively. BRICS countries may be able to counterbalance Western influence in international banking if a remittance platform that facilitates smooth trading between them is developed.
However, this proposal has to be well scrutinized. Although the system of clearing and alternative financial mechanisms is quite a promising one, practical implementation might bring many technical and even political problems. Matters of trust, transparency, and regulatory compliance have to be solved before such systems operate properly. Besides, BRICS countries have to solve the problem of internal divisions and varying economic priorities to make up for a unified front in this movement.
Türkiye’s proposal for a clearing system in Russia, as part of the BRICS framework, gives this significant developing group of countries a timely and strategic chance to respond to geopolitical difficulties by implementing economic reforms. By putting these changes into practice, member states would cooperate and BRICS would gain global relevance. At the same time, as countries struggle with the complexity of contemporary commerce, measures such as Türkiye’s will set the stage for a more egalitarian and multipolar economic system.
