CACS Policy Brief no 3 (new series)

Charting a New Economic Frontier: BRICS+ Collaboration and De-dollarisation in the Global Landscape

Lebo Mosebua and Goitseone Maswabi

The BRICS countries are leading the way in revolutionary change during a period marked by rapid changes in the dynamics of the global economy. The recent 15th annual summit of the BRICS bloc, comprising Brazil, Russia, India, China, and South Africa, has become a pivotal moment in the group’s trajectory. At the heart of discussions during this summit was the ambitious agenda of de-dollarisation and the exploration of a new currency paradigm. China’s pursuit of an alternative to the dollar-backed international financial system predates the Russia-Ukraine war, reflecting a long-standing strategic objective to reduce dependency on the US dollar.

As far back as 2014, China actively advocated for the establishment of alternatives to the prevailing global financial architecture, expressing its desire to elevate the status and influence of its own currency, the yuan. However, the geopolitical ramifications of the Russia-Ukraine war have accelerated and intensified China’s push for a multipolar world, notably in the realm of global currencies.

The ongoing conflict has unleashed a wave of re-evaluation and restructuring of international relations, prompting China to amplify its efforts in challenging the dominance of the US dollar. As the BRICS alliance expands its collaborative efforts, there is a growing emphasis on reducing dependency on the US dollar and to evade sanction-related penalties. This Policy Brief explores the implications of BRICS+ and de-dollarisation, providing insights into the potential benefits and challenges associated with these initiatives.

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