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Published by: Amity Research Centers
Published in: 2023

Abstract

The case, targeted at Management Students, Economists, Financial Experts, and Geopolitics Experts, discusses how the developing countries' trading bloc, BRICS, declared the expansion of its member countries and in future aimed to become self-sufficient economically by pursuing common currency goals, threatening the supremacy of the USD. To reduce their dependence on the USD, Russia, China, and Brazil had already started using non-USD currencies in their cross-border transactions, and more interestingly, each BRICS nation was critical of the dominance of the USD for different reasons. There were many potential benefits of BRICS currency, but the path of de-dollarisation was arduous, with many challenges. The lack of coordination among the BRICS bloc over monetary, fiscal, financial, and banking policies and the lack of coordination for managing economic indicators such as inflation, interest rates, exchange rates, and capital account convertibility were some of the biggest concerns. Few experts cited the idea of BRICS currency as a 'Flawed' one and a 'non-starter'. Given both opportunities and challenges, would the benefits of a common currency (BRICS currency) outweigh the costs? Could BRICS currency dethrone the USD in the future?

Teaching and learning

This item is suitable for undergraduate, postgraduate and executive education courses.

Time period

The events covered by this case took place in 2023.

Geographical setting

Region:
World/global

About

Abstract

The case, targeted at Management Students, Economists, Financial Experts, and Geopolitics Experts, discusses how the developing countries' trading bloc, BRICS, declared the expansion of its member countries and in future aimed to become self-sufficient economically by pursuing common currency goals, threatening the supremacy of the USD. To reduce their dependence on the USD, Russia, China, and Brazil had already started using non-USD currencies in their cross-border transactions, and more interestingly, each BRICS nation was critical of the dominance of the USD for different reasons. There were many potential benefits of BRICS currency, but the path of de-dollarisation was arduous, with many challenges. The lack of coordination among the BRICS bloc over monetary, fiscal, financial, and banking policies and the lack of coordination for managing economic indicators such as inflation, interest rates, exchange rates, and capital account convertibility were some of the biggest concerns. Few experts cited the idea of BRICS currency as a 'Flawed' one and a 'non-starter'. Given both opportunities and challenges, would the benefits of a common currency (BRICS currency) outweigh the costs? Could BRICS currency dethrone the USD in the future?

Teaching and learning

This item is suitable for undergraduate, postgraduate and executive education courses.

Settings

Time period

The events covered by this case took place in 2023.

Geographical setting

Region:
World/global

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