Can BRICS De-dollarize the Global Financial System?

by Zongyuan Zoe Liu, Mihaela Papa

Overview

Existing scholarship has not systematically examined BRICS (Brazil-Russia-India-China-South Africa) as a rising power de-dollarization coalition, despite the group developing multiple de-dollarization initiatives to reduce currency risk and bypass US sanctions. To fill this gap, this study develops a 'Pathways to De-dollarization' framework and applies it to analyze the institutional and market mechanisms that BRICS countries have created at the BRICS, sub-BRICS, and BRICS Plus levels. This framework identifies the leaders and followers of the BRICS de-dollarization coalition, assesses its robustness, and discerns how BRICS mobilizes other stakeholders. The authors employ process tracing, content analysis, semi-structured interviews, archival research, and statistical analysis of quantitative market data to analyze BRICS activities during 2009-2021. They find that BRICS' coalitional de-dollarization initiatives have established critical infrastructure for a prospective alternative nondollar global financial system. This title is also available as Open Access on Cambridge Core.

Product Details

ISBN-13:	9781009014625
Publisher:	Cambridge University Press
Publication date:	03/24/2022
Series:	Elements in the Economics of Emerging Markets
Pages:	75
Product dimensions:	5.94(w) x 8.98(h) x 0.24(d)

Table of Contents

1. Introduction; 2. A Coalitional De-dollarization Challenge?; 3. BRICS as a De-dollarization Coalition; 4. 'Go-it-Alone' Strategy: Establishing New Institutions and Market Mechanisms; 5. 'Reform-the-Status-Quo' Strategy: Remaking Existing Institutions and Markets; 6. Conclusion and Implications for Future Research.