Brics New Currency: An Investigation of Trade Dynamics to De-Dollarizing Intra-Brics Trade with the Reference of Indian Bilateral Trade Contracts

Abstract

This article analyzes the current systematic barriers to currency swaps and trade finance using the national currencies of the BRICS (also known as "de-dollarization"). We had suggests a quick, staged fix to bridge these gaps and lower the risk of trade among the BRICS countries. The findings indicate that: 1) Russia is increasingly choosing the Euro as its preferred arrangement currency within BRICS, indicating a disconnect between the goals of BRICS's de-dollarization and the settlement currency choice of Russian traders; 2) the Contingency Reserve Arrangement of the New Development Bank contains systemic barriers that prohibit direct currency swaps between BRICS Nations; and 3) although financial technology applications and settlement and payment systems are being integrated, there are no efforts being made to fundamentally address the systematic economic variables impeding national settlement use.