The BRICS valuation method aims to de-dollarize

mostafa falahaty nejad¹ majid eshaghi²

1) PhD student in pure mathematics at Semnan University
2) Professor of Pure Mathematics, Semnan University

Publication : 3rd International Conference on Applied Researches in Humanities, Economics, Management & Accounting(icrhema.com)
Abstract :
The U.S. dollar is one of the most important, if not the most important, components of American power in establishing the hegemony of the United States. In recent years, de-dollarization—the process of reducing reliance on the U.S. dollar in international trade and finance—has become a significant topic in the global economy. Although the dollar remains the cornerstone of the world s financial system, its dominance is increasingly being challenged. Geopolitical tensions, economic sanctions, and the desire of nations for monetary independence are among the factors driving countries toward this shift. This article aims to propose a method for valuing a BRICS currency that would be acceptable to all member states. As the diversity of variables in the allocation of the BRICS currency to more countries increases, the resilience of the currency against economic shocks strengthens. Given that some BRICS member countries are still developing, they may be vulnerable to economic disruptions and inflationary shocks. Therefore, diversifying the BRICS currency basket can help mitigate this issue to some extent.
Keywords : brics composite currency diversification resilience de dollarization