International scientific-practical conference Threats and risks for the

International scientific-practical conference “Threats and risks for the BRICS economies” Team project: CURRENCY INTEGRATION AS A DRIVER OF THE BRICS STRATEGIC DEVELOPMENT

GENERAL INFORMATION ABOUT THE BRICS ≈ 3 billion people ≈ 39, 7 million of square kilometers 42% 26% 27% OF WORLD POPULATION OF LAND TERRITORY OF WORLD GDP ≈ 16, 9 trillion USD * According to the official site of the presidency of the Russian Federation in the BRICS

GENERAL INFORMATION ABOUT THE BRICS GDP per capita in the BRICS in 2014, US dollars * According to information of the Federal Government Statistical Service

GENERAL INFORMATION ABOUT THE BRICS Export and import quotas of the BRICS in 2014, % of GDP * According to the official site of the presidency of the Russian Federation in the BRICS

PREREQUISITOS AND STAGES OF THE BRICS INTEGRATION • The development of export-import relations • The similarity of the economic model of the countries • The low level of GDP per capita Creating of the Customs Union Creating of the BRICS Development Fund on the basis of the BRICS Contingent Reserve Arrangement Enhanced features of the new development bank ( 15 -16 July 2014 VI Summit of the BRICS ) and the creation of a mega-regulator Creating of a single currency for the calculation of the Customs Union Creating of the own payment system Alignment of interest rates to regulate the movement of capital The economic growth of the BRICS and the establishment of a multipolar economic world picture

TASKS FOR THE BRICS INTEGRATION STAGES STAGE I. FREE MOVEMENT OF GOODS AND SERVICES WITHIN THE BRICS Customs Union BRICS Development Fund 1. Regulation of customs quotas 2. Aligning economic growth rate 3. Solving the problem of differing investment attractiveness 1. Extending the range of BRICS Development Fund 2. Formation of the Fund for Financial Support of the BRICS STAGE II. CREATION OF A SINGLE FINANCIAL SPACE Megaregulator Creating of the payment system 1. The restructuring of the financial systems of the BRICS countries, in accordance with a unified standard 2. Alignment of interest rates 3. Creation of a single financial space 1. Development of hardware and software to create a single payment system Creating of the single currency 1. Defining a new currency basket 2. Creating a new mechanism for regulating crossrates THE DEVELOPMENT OF THE REGULATORY FRAMEWORK

PREREQUISITOS AND STAGES OF THE BRICS INTEGRATION Creation of The customs Union • The need to create a single financial space Control of the course of the new currency BRICS Creation, management and control of the Payment System BRICS Creating a New Development Bank ( 15 -16 July 2014 VI Summit of BRICS ) Creating a pool of contingent foreign currency reserves of the BRICS ( 15 -16 July 2014 VI Summit of BRICS ) Development of regulatory and legal framework of a megaregulator Creating a Development Fund BRICS • The restructuring of governments of national financial systems in accordance with a unified standard • Alignment of interest rates Creating a megaregulator • •

FEATURES NEW DEVELOPMENT BANK AS A MEGAREGULATOR 1. Development and provision of a common economic policy, including fiscal and monetary; 2. Organization of non-cash circulation within the NGR payment system BRICS countries; 3. Regulation and supervision of the payment system of the BRICS countries; 4. Loans central banks and governments of the BRICS countries; 5. The control and regulation, in cooperation with the central banks of the BRICS countries, and non-lending activities of credit financial institutions; 6. The organization and implementation in cooperation with the central banks of the BRICS currency regulation and currency control; 7. The establishment of a new currency exchange rate against other currencies and its official publication; 8. The establishment of standards for the provision of statistical information processing and its official publication; 9. Planning and forecasting the development of the BRICS countries, the definition of vectors and strategic development goals; 10. Determination of the procedure for effecting settlements with international organizations, foreign governments, as well as legal entities and individuals. 11. Participation in the development of forecast and the balance of payments of each country of the BRICS.

STAGES OF THE BRICS PAYMENT SYSTEM I. Establishment of the operating-independent platform for the processing of international and in-country transactions using national and international payment cards. II. Organization of interaction between participants of the market of new payment services. III. Carrying out activities on the launch and development of payment instruments created by the system. IV. Creation and promotion of innovative payment services in the BRICS countries and beyond.

STRUCTURE OF THE BRICS PAYMENT SYSTEM NBD as the BRICS economies Megaregulator Joint-stock company which provides services to the proposed payment system Shareholders – the BRICS Central Banks Supervisory board of the company which provides services to the proposed BRICS payment system Embassadors of the BRICS Central Banks Chief Executive Officer of the company which provides services to the proposed payment system (appointed by the elected way) Executive Board of the company which provides services to the proposed BRICS payment system Representation in Brazil, Russia, India, China and South Africa

NEW CURRENCY REGULATINON MECHANISM OF THE BRICS BRL NEW CURRENCY OF THE BRICS RUB IRN CNY ZAR Determination course (Megaregulator) The market mechanism New currency of the BRICS RESOURSES The other FCC

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