Mechanisms of Monetary Cooperation in BRICS: First Results and New Challenges
The issues of creating a more equitable global monetary and financial system have been constantly in the focus of the BRIC countries since 2006. Gradual introduction of unprecedented restrictive measures against one of the participants – Russia – forced member states to intensify the work on diminis...
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| Format: | Article |
| Language: | English |
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Russian Academy of Sciences, Institute of Europe
2024-08-01
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| Series: | Современная Европа |
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| Online Access: | http://www.sov-europe.ru/images/pdf/2024/4-2024/Gusev-4-24.pdf |
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| author | Kirill N. Gusev Anna N. Tsibulina |
| author_facet | Kirill N. Gusev Anna N. Tsibulina |
| author_sort | Kirill N. Gusev |
| collection | DOAJ |
| description | The issues of creating a more equitable global monetary and financial system have been constantly in the focus of the BRIC countries since 2006. Gradual introduction of unprecedented restrictive measures against one of the participants – Russia – forced member states to intensify the work on diminishing their dependence on actions of the United States, searching for alternative ways of payment for goods and services and reducing transactions in US dollars. The article analyses prerequisites for development of monetary cooperation within BRICS and implications of the measures already taken in this direction. The extent to which introduction of a common currency can contribute or, on the contrary, create barriers to deepening economic integration within BRICS is explored. The experience of introducing euro in the EU shows that the decision on joining a common currency is not just an economic, but also a political one. Ignoring the risks associated with a radical change in payment systems can lead to serious disruptions in the world economy and push exporters and importers away from implementation of agreements reached at the highest level. The authors come to the conclusion that speeding up currency cooperation without relying on comprehensive consideration of the interests of BRICS countries and assessment of potential costs and benefits can lead to deterioration of the terms of mutual trade against the backdrop of the US attempts to maintain the existing architecture of global monetary system with absolute domination of the US dollar. |
| format | Article |
| id | doaj-art-ca22f85cb90b4914a1e3430cd3ca5a53 |
| institution | DOAJ |
| issn | 0201-7083 |
| language | English |
| publishDate | 2024-08-01 |
| publisher | Russian Academy of Sciences, Institute of Europe |
| record_format | Article |
| series | Современная Европа |
| spelling | doaj-art-ca22f85cb90b4914a1e3430cd3ca5a532025-08-20T02:54:35ZengRussian Academy of Sciences, Institute of EuropeСовременная Европа0201-70832024-08-014879910.31857/S0201708324040077Mechanisms of Monetary Cooperation in BRICS: First Results and New ChallengesKirill N. Gusev0Anna N. Tsibulina1Institute of Europe Russian Academy of SciencesInstitute of Europe Russian Academy of SciencesThe issues of creating a more equitable global monetary and financial system have been constantly in the focus of the BRIC countries since 2006. Gradual introduction of unprecedented restrictive measures against one of the participants – Russia – forced member states to intensify the work on diminishing their dependence on actions of the United States, searching for alternative ways of payment for goods and services and reducing transactions in US dollars. The article analyses prerequisites for development of monetary cooperation within BRICS and implications of the measures already taken in this direction. The extent to which introduction of a common currency can contribute or, on the contrary, create barriers to deepening economic integration within BRICS is explored. The experience of introducing euro in the EU shows that the decision on joining a common currency is not just an economic, but also a political one. Ignoring the risks associated with a radical change in payment systems can lead to serious disruptions in the world economy and push exporters and importers away from implementation of agreements reached at the highest level. The authors come to the conclusion that speeding up currency cooperation without relying on comprehensive consideration of the interests of BRICS countries and assessment of potential costs and benefits can lead to deterioration of the terms of mutual trade against the backdrop of the US attempts to maintain the existing architecture of global monetary system with absolute domination of the US dollar.http://www.sov-europe.ru/images/pdf/2024/4-2024/Gusev-4-24.pdfbricsbrics+dedollarisationcommon currencynew development bank |
| spellingShingle | Kirill N. Gusev Anna N. Tsibulina Mechanisms of Monetary Cooperation in BRICS: First Results and New Challenges Современная Европа brics brics+ dedollarisation common currency new development bank |
| title | Mechanisms of Monetary Cooperation in BRICS: First Results and New Challenges |
| title_full | Mechanisms of Monetary Cooperation in BRICS: First Results and New Challenges |
| title_fullStr | Mechanisms of Monetary Cooperation in BRICS: First Results and New Challenges |
| title_full_unstemmed | Mechanisms of Monetary Cooperation in BRICS: First Results and New Challenges |
| title_short | Mechanisms of Monetary Cooperation in BRICS: First Results and New Challenges |
| title_sort | mechanisms of monetary cooperation in brics first results and new challenges |
| topic | brics brics+ dedollarisation common currency new development bank |
| url | http://www.sov-europe.ru/images/pdf/2024/4-2024/Gusev-4-24.pdf |
| work_keys_str_mv | AT kirillngusev mechanismsofmonetarycooperationinbricsfirstresultsandnewchallenges AT annantsibulina mechanismsofmonetarycooperationinbricsfirstresultsandnewchallenges |