BRICS AGAINST HEGEMONY OF THE UNITED STATES DOLLAR IN THE INTERNATIONAL MONETARY SYSTEM
Keywords:
BRICS, American hegemony, international monetary system
Abstract
This study aims to examine the indications of a new currency project which is planned to be announced at the BRICS Summit in South Africa2023. The BRICS countries now account for 40% of the global population and a quarter of global GDP. PUse of Yuan has increased over recent years, accounting for 7% of global foreign exchange trading. While the US dollar continues to play a large role in the international financial system, including serving as the leading global reserve currency. US dominance is increasingly facing challenges from oil-producing countries, including Iran, andalsoWashington's longtime ally Saudi Arabia which announced that it would consider selling oil in currencies other than Dollar. The research uses the theory of International Monetary System and Counter Hegemony in understanding the problems that occur. This research uses a qualitative approach to explain a phenomenon in depth and examines more to the substance of the meaning of the phenomenon.The findings of this research are on the attitude of each BRICS member country, that although BRICS has a discourse for the global financial system, but no country seems to seriously intend to de-dollarize or make a real effort to find an alternative currency to replace the US dollar. The goal that is in the common interest of BRICS is not to replace, find an alternative to the dollar, or even for the purpose of lowering the value of the US dollar. The common goal is to control hegemony so that the US cannot arbitrarily exercise its political power for unilateral economic and military interests.
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References
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Bag, Sauradeep. “BRICS’ Reserve Currency: An Attempt to Reduce the Dollar’s Dominance?” ORF, 1 Sept. 2022, www.orfonline.org/expert-speak/brics-reserve-currency/.
Batista Jr, P. N. (2008). A América do Sul em movimento. Brazilian Journal of Political Economy, 28, 226–238.
Bosshard, P. (2007). China’s Role in Financing African Infrastructure. International Rivers Network.
Bremmer, Ian, (2013), Every Nation for Itself. What Happens When No One Leads the World, Penguin, New York.
Brown, Garrett W, Mc Lean, Iain and McMillan, Alistair, (2018), Oxford Concise of Politics and International Relations, Oxford University Press, Oxford, UK.
Cresswell, J. W. (2013). Qualitative Inquiry and Research Design (Third Edit). SAGE Publications, Inc.
Davis, Lee, “Chinese Yuan History, Currency & Significance”, 21-11-2023 dalam https://study.com/academy/lesson/significance-of-chinese-yuan.html [5 Februari 2024]
Dietz, Charles. “Could a BRICS Currency Challenge the US Dollar?” African Business, 26 May 2023, african.business/2023/05/trade-investment/can-brics-break-the-grip-of-the-greenback.
Diniz-Maganini, Natalia, et al. “Price Efficiency of the Foreign Exchange Rates of BRICS Countries: A Comparative Analysis.” Latin American Journal of Central Banking, vol. 4, no. 1, 1 Mar. 2023, p. 100081, www.sciencedirect.com/science/article/pii/S2666143822000357, https://doi.org/10.1016/j.latcb.2022.100081.
Farhi, E., & Maggiori, M. (2018). A model of the international monetary system. Quarterly Journal of Economics. https://doi.org/10.1093/qje/qjx031
Friedman, Thomas L, “Bush Lifts a Ban on Economic Ties to South Africa”, New York Times July 11, 1991, https://www.nytimes.com/1991/07/11/world/bush-lifts-a-ban-on-economic-ties-to-south-africa.html [5 Februari 2024]
Gopinath, G., Boz, E., Casas, C., Díez, F. J., Gourinchas, P.-O., & Plagborg-Møller, M. (2020). Dominant currency paradigm. American Economic Review, 110(3), 677–719.
Iancu, A., Anderson, G., Ando, S., Boswell, E., Gamba, A., Hakobyan, S., Lusinyan, L., Meads, N., & Wu, Y. (2022). Reserve Currencies in an Evolving International Monetary System. Open Economies Review. https://doi.org/10.1007/s11079-022-09699-x
Ignatov, A. (2020). The Digital Economy of BRICS: Prospects for Multilateral Cooperation. International Organisations Research Journal. https://doi.org/10.17323/1996-7845-2020-01-02
Ignatov, A. (2022). THE BRICS AGENDA ON THE INTERNET GOVERNANCE. International Organisations Research Journal. https://doi.org/10.17323/1996-7845-2022-02-04
Kibtiah, T. M. (2016). Jatuhnya Harga Minyak Dunia dan Pengaruhnya Terhadap Hubungan Diplomatik Saudi Arabia-Amerika Serikat. Universitas Hasanuddin.
Kirton, J., & Larionova, M. (2022). THE FIRST FIFTEEN YEARS OF THE BRICS. International Organisations Research Journal. https://doi.org/10.17323/1996-7845-2022-02-01
Kondratov, D. I. (2021). Internationalization of the Currencies of BRICS Countries. Herald of the Russian Academy of Sciences. https://doi.org/10.1134/S1019331621010044
Kondratov, D. I. “Internationalization of the Currencies of BRICS Countries.” Herald of the Russian Academy of Sciences, vol. 91, no. 1, Jan. 2021, pp. 37–50, www.ncbi.nlm.nih.gov/pmc/articles/PMC8071586/, https://doi.org/10.1134/s1019331621010044.
“Kremlin says it has a list of Western assets to be seized if Russian assets are confiscated”, The Straits Time, Dec 29, 2023, https://www.straitstimes.com/world/europe/kremlin-says-it-has-a-list-of-western-assets-to-be-seized-if-russian-assets-are-confiscated [5 Februari 2024]
Liu, Z. Z., & Papa, M. (2022). Can BRICS de-dollarize the global financial system? Cambridge University Press.
Liu, Zongyuan Zoe, and Mihaela Papa. “Can BRICS De-Dollarize the Global Financial System?” Cambridge University Press, 24 Feb. 2022, https://doi.org/10.1017/9781009029544.
“Major Foreign Holders of United States Treasury Securities as of October 2023 (in billion U.S. dollars)”, https://www.statista.com/statistics/246420/major-foreign-holders-of-us-treasury-debt/ [di unduh 5 Februari 2024]
Miles, L., & Croucher, R. (2013). Gramsci, Counter-hegemony and Labour Union-Civil Society Organisation Coalitions in Malaysia. Journal of Contemporary Asia. https://doi.org/10.1080/00472336.2013.775754
Murau, Steffen, et al. “International Monetary Hierarchy through Emergency US-Dollar Liquidity: A Key Currency Approach.” Competition & Change, 15 Aug. 2022, p. 102452942211186, https://doi.org/10.1177/10245294221118661.
Pamungkas, M. L., Rahayu, R. D. S., & Krisyanti, T. A. (2019). Perbandingan Sistem Pinjaman IMF dan Brics New Development Bank serta Potensi Dominasi Sistem Moneter Internasional. Nation State: Journal of International Studies, 2(2), 134–150.
Prasad, E. (2023). How will digital technologies influence the international monetary system? Oxford Review of Economic Policy. https://doi.org/10.1093/oxrep/grad011
Pratama, A. (2020). Praktik Hedging dan Dampaknya Terhadap Superpower: Dalam Konteks Asia Pasifik. Jurnal Sentris. https://doi.org/10.26593/sentris.v1i1.4128.50-61
reporters, GT staff. “BRICS Currency “Plausible Alternative” to Dollar Hegemony - Global Times.” Www.globaltimes.cn, www.globaltimes.cn/page/202305/1290700.shtml.
Salvatore, D. (2020). Growth and trade in the United States and the world economy: Overview. Journal of Policy Modeling. https://doi.org/10.1016/j.jpolmod.2020.03.001
Salvatore, D. (2021). The U.S. and the world economy after Covid-19. Journal of Policy Modeling. https://doi.org/10.1016/j.jpolmod.2021.02.002
Santoso, W., & Simorangkir, I. (1999). Pengendalian Moneter Dalam Sistem Nilai Tukar yang Fleksibel. Buletin Ekonomi Moneter Dan Perbankan.
Singh, Tanupriya. “Towards De-Dollarization: BRICS Advances Alternative to US-Dominated Financial System.” Peoples Dispatch, 7 Apr. 2023, peoplesdispatch.org/2023/04/07/towards-de-dollarization-brics-advances-alternative-to-us-dominated-financial-system/.
Siswati, E. (2018). ANATOMI TEORI HEGEMONI ANTONIO GRAMSCI. Translitera : Jurnal Kajian Komunikasi Dan Studi Media. https://doi.org/10.35457/translitera.v5i1.355
Sormin, S. A. P. (2018). Hegemoni Amerika Serikat di Asia Tenggara. Jurnal Education and Development.
Sri, W., Lingge, M., Risfan, R., Herawati, S., & Putra, S. (2019). Sistem Internasional. Jurnal Perdagangan Internasional.
Tukic, N., & Burgess, M. (2016). China’s role in Africa’s water sector: Mapping the terrain. Waterlines. https://doi.org/10.3362/1756-3488.2016.004
Widayanto, Sulistyo, et.al, (2023), Politik Perdagangan Indonesia. Problematika, Pemikiran dan Realitasnya, Unisri Press, Surakarta.
Zharikov, M. V. (2020). The digital transactions currency for the BRICS. Journal of Siberian Federal University - Humanities and Social Sciences. https://doi.org/10.17516/1997-1370-0681
Zharikov, M. V. (2023). Digital Money Options for the BRICS. International Journal of Financial Studies. https://doi.org/10.3390/ijfs11010042
Published
2023-11-30
How to Cite
Firdaus, N., Widayanto, S., & Indrayani, I. (2023). BRICS AGAINST HEGEMONY OF THE UNITED STATES DOLLAR IN THE INTERNATIONAL MONETARY SYSTEM. Journal of Social Political Sciences, 4(4), 421-442. https://doi.org/10.52166/jsps.v5i1.222
Section
Articles
Copyright (c) 2023 Najmi Firdaus, Sulistyo Widayanto, Irma Indrayani
This work is licensed under a Creative Commons Attribution 4.0 International License.
