A Future Brics Currency as a Competitor to the US Dollar
DOI:
https://doi.org/10.69968/ijisem.2025v4i3241-249Keywords:
BRICS currency, De-dollarization, US dollar, intra-BRICS trade, global financial systemAbstract
US dollar has been controlling the international financial system since it has been the major reserve currency, as well as the mode of international trade. The BRICS alliance, however, consisting of Brazil, Russia, India, China, South Africa And lately added members has suggested an international currency to break this hegemony, due to geopolitical tensions and economic aspirations as well as the urge to de-dollarize. This paper looks at the viability, incentive and obstacles of a possible BRICS currency, evaluating its economics and geopolitical consequences. Based on the economic muscles of the BRICS countries and taking into account the fact that they comprise more than 30 percent of the global GDP, the article examines how a single currency would be able to advance intrabloc trade, decrease reliance on dollar, and transform international financial balances. It also brings forth major challenges such as economic heterogeneity, technological institutional specifications, as well as the deep-rooted global dominance of the dollar. Although a BRICS currency would promote more independence and hit at the established financial playing field, the success of such currency requires the necessity to eliminate the internal inequity and acquire the confidence of the foreign market, and this may take a long time to occur, indicating that the global economic leaders will not change the global position overnight.
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