The Expediency of Creating a Supranational Currency within the Framework of the SCO and BRICS International Organizations Under the Influence of Trade and Sanctions Restrictions

 
PIIS013128120024357-3-1
DOI10.31857/S013128120024357-3
Publication type Article
Status Published
Authors
Occupation: Senior Researcher at the Center for Institutes of Socio-Economic Development
Affiliation: Institute of Economics of the Russian Academy of Sciences
Address: 32, Nakhimovsky prospect, Moscow, 117997, Russian Federation
Journal nameProblemy Dalnego Vostoka
EditionIssue 1
Pages53-62
Abstract

The research consists in substantiating the significance and potential of the grouping of the SCO and BRICS countries; determining the conditions for the possibility of creating a supranational currency within the framework of the SCO and BRICS international organizations under the influence of trade and sanctions restrictions; formulating the advantages and disadvantages of several areas of transformation of the global financial system. The BRICS countries account for more than 40% of the world's population and almost 30% of global GDP, and they have high potential in all spheres of economic activity. At the same time, the dominance of the dollar allows the American economy to influence the world with its monetary policy, strengthens the US position in the global economy.

Turbulence in the international arena is increasingly pushing the countries of the SCO and BRICS international organizations to take steps to strengthen their positions in the world, including the possible admission of new members and an increase in trading volumes of their national currencies. It is shown that the increasing turbulence, the questions arising in many countries regarding the freezing of foreign exchange reserves of the state and the procedure for the confiscation of the property of Russian oligarchs, the measures of central banks of different countries to diversify their reserves into currencies such as the yuan indicate that the dominance of the dollar may end not the main competitors of the dollar, but a large group of alternative currencies.

 

It is proved that since the dollar and the euro rely on a huge amount of printed money and do not have a solid foundation behind them, the BRICS currency can be based on real goods traded on exchanges: oil, precious metals, wheat, rice, coffee and much more. Since the BRICS countries are major suppliers of the stock market, therefore, the diverse composition of the BRICS countries' exports gives them the opportunity to complement each other, which confirms the feasibility of creating a supranational currency within the framework of the SCO and BRICS international organizations.

KeywordsBRICS, de-dollarization, monetary policy, gold and foreign exchange reserves, China, international trade, world financial system, national currency, Russia, SCO, digital ruble, yuan
Received12.12.2022
Publication date17.03.2023
Number of characters23600
Cite  
100 rub.
When subscribing to an article or issue, the user can download PDF, evaluate the publication or contact the author. Need to register.

Number of purchasers: 0, views: 370

Readers community rating: votes 0

1. Engoyan A.P. K voprosu o transformacii paradigmy global'nogo razvitiya (On the transformation of the paradigm of global development). Vestnik Erevanskogo gosudarstvennogo universiteta. Seriya 1: Obshchestvennye nauki. 2020. Vip. 31. S. 29–41. (In Russ.)

2. Gribanich V.M. Raschety v nacional'nyh valyutah mezhdu stranami EAES i BRIKS (Calculations in national currencies between the EAEU and BRICS countries). Vestnik RGGU. Seriya «Ekonomika. Upravlenie. Pravo». 2020. No. 2. S. 50–56. (In Russ.)

3. Heifets B.A. Stepanov N.S., Iniciativa «Poyas i Put' 2.0» i Rossiya (The Belt and Road 2.0 Initiative and Russia). Problemy Dal'nego Vostoka. 2019. No. 6. S. 34–49. (In Russ.)

4. Khojayan K.G. Vopros transformacii paradigmy global'nogo razvitiya na primere integracionnyh ob"edinenij (The question of transformation of the paradigm of global development on the example of integration associations). Vestnik Udmurtskogo universiteta. Sociologiya. Politologiya. Mezhdunarodnye otnosheniya. 2022. No. 2. S.199–207. (In Russ.)

5. Klepach A.N. Rossijskaya ekonomika v novoj geoekonomicheskoj real'nosti (The Russian economy in the new geo-economic reality). Ekonomicheskoe vozrozhdenie Rossii. 2022. No. 3 (73). S. 45–51. (In Russ.)

6. Kondratov D.I. Problemy internacionalizacii kitajskogo yuanya (Problems of internationalization of the Chinese yuan). Ekonomika. Nalogi. Pravo. 2021. No. 5. S. 74–88. (In Russ.)

7. Krokhina Yu.A. Perspektivy priobreteniya rossijskim rublem statusa rezervnoj valyuty: finansovo-pravovoj aspekt (Prospects for the acquisition of reserve currency status by the Russian ruble: financial and legal aspect). MNIZH. 2022. No. 7–2 (121). S. 184–187. (In Russ.)

8. Oleinik G.V. Rol' mezhdunarodnyh ekonomicheskih ob"edinenij v obespechenii strategicheskih interesov Rossijskoj Federacii (The role of international economic associations in ensuring the strategic interests of the Russian Federation). Industrial'naya ekonomika. 2022. No. 5. S. 39–47. (In Russ.)

9. Stepanov N.S. Dedollarizaciya ekonomiki Rossii v usloviyah sankcij: problemy i perspektivy (Dedollarization of the Russian economy under sanctions: problems and prospects). Modern Economic Success. 2019. No. 3. S. 51–56. (In Russ.)

10. Stepanov N.S. Prepyatstviya na puti realizacii proekta «Bol'shaya Evraziya» (Obstacles to the implementation of the project "Greater Eurasia"). Mir peremen. 2022. No. 2. S. 163–173. (In Russ.)

11. Stepanov N.S. Sozdanie edinoj nadnacional'noj valyuty v ramkah SHanhajskoj Organizacii Sotrudnichestva (Creation of a single supranational currency within the framework of the Shanghai Cooperation Organization). Finansy i upravlenie. 2019. No. 3. S. 50–60. (In Russ.)

12. Vedernikov A.V. Mirovaya stabil'nost' i valyutnye pravootnosheniya (World stability and currency legal relations). Baikal Research Journal. 2022. No. 3. S. 42. (In Russ.)

13. Yarygina I.Z. Perspektivy nacional'nyh valyut BRIKS — EAES (Prospects of BRICS — EAEU national currencies). Bol'shaya Evraziya: razvitie, bezopasnost', sotrudnichestvo. 2020. No. 3–1. S.274–276. (In Russ.)

14. Zharikov M.V. K voprosu ob effektivnosti gipoteticheskoj kollektivnoj valyuty dlya stran BRIKS (On the question of the effectiveness of a hypothetical collective currency for the BRICS countries). Problemy Dal'nego Vostoka. 2019. No. 4. S. 93–103. (In Russ.)

Система Orphus

Loading...
Up