Use of national currencies in international settlements: experience of the BRICS countries

Abstract

Financial crises of the past decades revealed the instability of the modern international monetary system based on a single dominant currency. Increasing the role and turnover of national currencies in international economic transactions and payments would contribute to redressing the existing imbalance. BRICS countries' experience indicates that efficient currency internationalization can be reached by both forming a number of prerequisites and financial and economic policies pursued by the authorities. Strengthening the BRICS countries' collaboration and implementation of joint initiatives should help create favorable conditions for promoting a wider use of their currencies in international settlements.