The Global South countries should coordinate their efforts to establish a new international financial system that would reduce the risks for developing economies, said Andrey Kostin, president and chairman of the board of Russia’s VTB bank.
He said this would involve using national currencies, and eventually digital currencies of central banks, for cross-border transactions, as well as creating an independent global system.
According to him, the system is based on existing national systems for transmitting financial messages, an alternative to SWIFT.
He said this during an interview with Xinhua on the sidelines of the eighth Eastern Economic Forum.
Kostin also proposed developing direct correspondent relations between commercial banks of the Global South countries, forming an alternative cross-border banking network.
The setting up of a new international depository and settlement hub would facilitate investment in developing markets and make it more flexible and secure.
He said he believed that the creation of a financial system of the Global South would enhance the overall stability of the international financial system.
This would ultimately benefit the growth of the global economy.
Organised by the Roscongress Foundation, the eighth Eastern Economic Forum is being held in Vladivostok on Sept. 10-13.
