Document Type : Original Article
Author
Ferdowsi University of Mashhad
Abstract
Among the reasons for the formation of the BRICS organization are the financial crises and the problems of dependence on the dollar, for this reason, the member countries of this organization have tried to increase the power of their central banks by carrying out the processes called de-dollarization. Iran is one of the countries that has become a member of the BRICS organization, and at the same time, it is under the influence of sanctions and dependence on the dollar. Therefore, the aim of the current research is the feasibility of de-dollarization of Iran's economy based on the BRICS membership based on the theory of de-dollarization. Considering that the two countries China and Russia are using their global exchange systems and both are members of BRICS, the question has been raised that according to the economic agreements of BRICS, what advantages will membership in this organization bring to Iran and how the field of dollarization for Will it provide Iran? The hypothesis of the research is that according to the activity of the global exchange systems of China and Russia in front of SWIFT, the use of BRICS economic cooperation is a suitable platform for Iran's dollarization. In order to investigate the current situation, the data from 1996 to 2020 has been analyzed using the time series technique. The findings of the research indicate that the BRICS membership, in addition to providing the basis for increasing economic exchanges, will also provide a suitable platform for de-dollarization of Iran's trade, considering the extent of partner countries in the systems of China and Russia. At the same time, it should be noted that dollarization does not mean abandoning the dollar as a currency in international exchanges, and it only refers to increasing diversity in the currency portfolio of countries.
Keywords
challenges and analysis of expected results in Georgia. Economic analysis, 29(1), 63-67.
Arrieta, Johar. Florián, David. López, Kristian and Morales, Valeria. (2020). Policies for
Transactional De-Dollarization: A Laboratory Study, Serie de Documentos de Trabajo
Working Paper series, No: 2020-011.
Brandt, P., and Freeman, J. (2006). Advances in Bayesian Time Series Modeling and the
Study of Politics: Theory Testing, Forecasting, and Policy Analysis. Political Analysis, 14
(1), 1-36.
BRICS Business Council. (2020). Annual Report of 2020 on BRICS. https://brics-
russia2020.ru/images/114/83/1148381.pdf
Cakir, Selim. Atamanchuk, Maria. Al Riyami, Mazin, Sharashidze, Nia and Reyes,
Nathalie. (2022). Reducing Dollarization in the Caucasus and Central Asia: What Could
Help Make Further Progress, IMF Working Papers, No: WP/22/154.
Catão, Luis and Terrones, Marco. (2016). Financial De-Dollarization: A Global Perspective
and the Peruvian Experience, IMF Working Papers, No: WP/16/97.
Contreras, Alex. Gondo, Rocío. Ore, Erick and Forero, Fernando. (2019). Assessing the
impact of credit de-dollarization measures in Peru, Serie de Documentos de Trabajo
Working Paper series, No: 2019-005.
Desai, Radhika and Hudson, Michael. (2021). Beyond the Dollar Creditocracy: A
Geopolitical Economy, Valdai Papers, NO: 2021- 116.
Dettling, Marc. (2020). Applied Time Series Analysis, Institute for Data Analysis and Process Design, Zurich University.
Davis, Stuart. (2023). Sanctions as war: anti-imperialist perspectives on American geo-
economic, Published by Hayamarket Books.
Eichengreen, Barry and Flandreau Marc. (2009). The rise and fall of the dollar (or when did
the dollar replace sterling as the leading reserve currency?), European Review of Economic
History, 13 (3), 377–411.
Han, Z., and Paul, T. V. (2020). China’s Rise and Balance of Power Politics, The Chinese
Journal of International Politics, 13 (1), 1–26.
Huleppa, Alwar. (2023). The Statuses of De-Dollarization in the Indian Economy, Journal
of Emerging Technologies and Innovative Research, 10 (1), 326-332.
Galindo, Arturo and Leiderman, Leonardo. (2005). Living with Dollarization and the Route
to Dedollarization, Working Paper, No: 526, Inter-American Development Bank, Research
Department, Washington.
Gribina, Nico and Trushkin, Sergey. (2020). De dollarization as an Indicator of the
Formation of National-Oriented Public Policy, Advances in Economics, Business and
Management Research, 32 (128), 1085-1089.
Kievich, Advin. (2018). De-Dollarization of the World Economy as an Objective reality,
Repository of Polessky State University Paper, No: 336.
Johnson, Juliet. (2013). The Russian federation: International Monetary Reform and
Currency Internationalization, Asian Development Bank Working Paper, No: 2013-4.
Liu, Zongyuan Zoe and Papa, Mihaela. (2022). Can BRICS De-dollarize the Global
Financial System?, University Printing House, Cambridge.
Molodyko, Kirill. (2020). From Reserve Currencies to Reserves of Critical Goods:
Designing a New BRICS International Currency, BRICS Law Journal, 7 (4), 67-84.
New Development Bank (NDB). (2017). NDB’s General Strategy: 2017-2021. New
Development Bank. www.ndb.int/wp-content/uploads/2017/07/NDB- Strategy-Final.pdf
New Development Bank (NDB). (2019). Annual Report 2019. www.ndb.int/annual-report-
2019/
Parfinenko, Tamara. (2019). International Economic Integration of BRICS Countries–
Driver of Regional and Global Economic Growth, Advances in Economics, Business and
Management Research 22 (131), 426-431.
Plata, Patricia Alvarez and Herrero, Alicia García. (2007). To dollarize or de-dollarize:
Consequences for Monetary Policy, Asian Development Bank Working Paper, No: 2007-1.
Sarkar, Rumu. (2016). Trends in Global Finance: The New Development (BRICS) Bank,
Loyola University Chicago International Law Review, 13 (2), 89-103.
Sciortino, Raffaele. (2022), Internationalisation of the Renminbi Yuan and De-
dollarization, In: The US-China rift and its impact on globalization. Crisis, strategy,
transitions, published by Asterios Editore, Trieste,
Singh, Ridipt. (2023). Russia, India, and China Alliance – Towards balancing the world
order, Electronic Journal of Social and Strategic Studies, 3 (3), 328-350.
Shagina, Maria. (2022). Western financial warfare and Russia’s de-dollarization strategy:
How sanctions on Russia might reshape the global financial system, FIIA Briefing Paper,
No: 339.
Shagina, Maria. (2023) ‘Central Bank Digital Currencies and the implications for the global
financial infrastructure: the transformational potential of Russia’s digital rouble and
China’s digital renminbi’, FIIA Briefing Paper 329.
Congressional Research Service, No: 2021-885.
Yeyati, Eduardo Levy. (2021). Financial dollarization and de-dollarization in the new
millennium, Serie de Documentos de Trabajo Working Paper series, No 2021-38.
Weakliem, D. (2010). Time Series Analysis of Political Change. In: Handbook of Politics.
Handbooks of Sociology and Social Research. Springer, New York
)
Send comment about this article