Can BRICS De-dollarize the Global Financial System?

Abstract

Existing scholarship has not systematically examinedBRICS (Brazil, Russia, India, China, South Africa) as a rising powerde-dollarization coalition despite the group developing multiplede-dollarization initiatives to reduce currency risk and bypass USsanctions. To fill this gap, this study develops a “Pathways toDe-dollarization”framework and applies it to analyze the institutionaland market mechanisms that BRICS countries have created at theBRICS, sub-BRICS, and BRICS Plus levels. This framework identifies theleaders and followers of the BRICS de-dollarization coalition, assessesits robustness, and discerns how BRICS mobilizes other stakeholders.The authors employ process tracing, content analysis, semi-structuredinterviews, archival research, and statistical analysis of quantitativemarket data to analyze BRICS activities during 2009–2021. They findthat BRICS’coalitional de-dollarization initiatives have establishedcritical infrastructure for a prospective alternative nondollar globalfinancial system. This title is also available as Open Access onCambridge Core