Ahead of the 17th BRICS summit in July, Russia and China have proposed to launch a new ‘investment platform’ to boost the growth of member nations and rival the Western-led financial system. The Presidents of both countries, Vladimir Putin and Xi Jinping laid out the proposal on Friday that focuses on growth in the global south. The strategic alignment between China and Russia is a new push to drift from the US dollar and Western dominance.

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New BRICS ‘Investment Platform’: What Is It All About? Explained

The new BRICS investment platform revolves around strengthening ties around technology, education, trade, and finance. The proposal will likely be discussed at the upcoming summit where other member nations will share their consensus or disagreements. Putin and Jinping stressed that the alliance must invest in the platform and the amount will be distributed for developments.

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“We must multiply the volume of capital investment,” said Putin on the new BRICS platform platform. He added, “Our countries need to step up cooperation in areas such as technology, education, trade, and finance.” The two leaders exchanged updates via phone and are looking to make the project a reality.

In this way, BRICS members will not rely on funds from Western-led institutions but can depend on the investment platform. If the proposal is accepted by other members, chances remain high that many more countries could begin using the platform. The move will reduce dependency on the US dollar where it’s the de facto currency that comes from the IMF.

The BRICS investment platform could begin issuing local currencies for members and other nations boosting trade among emerging economies. It could be a financial alternative to Western-dominated institutions and align strongly towards developing and least-developed countries (LDCs). They would have significant power as the bloc financially towers when all members get together.