Can BRICS de-dollarize the global financial system? /
Liu, Zongyuan Zoe,author.
Papa, Mihaela,author.
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--back cover.
Includes bibliographical references (pages [68]-85).
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.
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--back cover.
Monetary policy
International trade.
Dollarization