BOAO /China/, March 28. /TASS/. To eliminate risks in the trade and economic sphere, the world needs a new type of global financial system that will not be influenced by Western countries, according to Kirill Babaev, Director of the Institute of China and Modern Asia at the Russian Academy of Sciences.
"We need a financial system free from any pressure, be it the dollar, the euro or American institutions," he said at the BoaoForum for Asia (BFA), which is currently being held in China's Hainan Province. "We need a financial infrastructure that will minimize risks for companies and banks as much as possible, whether in India, China or the Middle East. We also need a trade infrastructure that will guarantee rights in free trade, its principles for all, to take into account the interests of all countries."
Babaev noted that there are financial institutions in the world that have been in place since the Bretton Woods system was established in the 1940s. "However, as you can see, they are no longer effective, they are used as a tool of pressure," he added.
"We need a common infrastructure or financial transactions that will not be controlled by the West," the director explained. "You see what we have: many banks around the world fear secondary sanctions <...> that could be applied to their businesses."
According to Babayev, a new financial infrastructure can be created thanks to BRICS or based on a bilateral format, for example, created by the efforts of Russia and China. "Such a mechanism will emerge sooner or later. A system of the global economy that will be much fairer will emerge," he summarized.
The Boao Forum for Asia 2024 will be held from March 26-29 under the theme "Asia and the World: Shared Challenges, Shared Responsibilities." The Russian side is represented at the forum by Deputy Prime Minister Alexey Overchuk and Russian Ambassador to Beijing Igor Morgulov. The Boao Forum for Asia is called the Eastern Davos; it is an important platform for signing important agreements, coordinating positions between representatives of business and government circles of Asian countries and all other regions of the world.