The Influence of BRICS’ Economic Growth on the US Dollar

Abstract

This thesis explores the possible effect of BRICS economic growth on U.S. dollar global dominance and, more precisely, how this coalition's ambition for financial independence is shaping global financial systems. Historically and geopolitically, this research looks at how the BRICS nations - Brazil, Russia, India, China, and South Africa - along with the recent new entrants, attempt to challenge the conventional Western-led economic order. Among these are the quest for multipolarity, institutional means pursued by BRICS through its New Development Bank, and the drive for diversification away from the US dollar. Being the world's largest exporter, China is proving to be a case study of broader BRICS currency strategies through the increasing use of the Renminbi instead of the USD in trade and bilateral agreements. This thesis emphasizes a coalition that pursues a new international order - one hitherto often framed as a Global South counterweight to Western hegemony - in which there is greater advocacy for economic inclusiveness and governance reforms. BRICS bloc has as a strong foundation that is going to challenge the long-standing hegemony of the dollar. By increasing institutional and economic unity, seems well-placed for revolutionary changes in the global financial system.