ENERGY, FINANCE, AND DE-DOLLARIZATION: BRICS STRATEGIES FOR A POST-DOLLAR ORDER

Abstract

The rise of BRICS as an alliance of emerging economies has triggered fresh arguments about the future of the international monetary order and the sustainability of the US dollar as the unified leading traditional reserve currency. The idea of de-dollarization has become salient following the Russia-Ukraine war, the international sanctions imposed on Russia, the adoption of substitute currencies in the energy and trade arena, and the weaponization of the dollar in general. On a changing terrain, the BRICS nations (Brazil, Russia, India, China and South Africa, now includes Brazil as a new member) are attempting to recover balance in the global financial framework with the effects of regional currencies, greater energy coordination, and the New Development Bank. The tools of the post-dollar world order are reduced to energy partnership, diversify their currencies, and even financial innovation of BRICS, which is discussed in the next article. It describes how BRICS is becoming more significant in the larger game against the economic hegemony and the chances and limitation to alter the financial creating institutions. This paper concludes that the BRICS strategies can help reduce the monopoly position of the dollar, but structural asymmetries and infirmities among these states, institutional incoherence, and embedded international monetary architecture continue to plague the emergence of a real multi-polar monetary order.