BRICS in Global Financial System: The Need to Level the Playing Field

... established rules of the international foreign exchange and credit markets, BRICS are, in fact, deprived of the possibility to make settlements and payments in their own currencies in the jurisdictions under their control. Essentially, their role in the global financial system is reduced to buying low-yielding bonds of developed nations as a key reserve asset. Meanwhile, Western countries have exhausted the possibilities of productive use of “excessive” financial resources accumulated in emerging markets, which leads to the growth of global debt and inflation. The use of the U.S. dollar as a key reserve currency begets ...