FORMATION OF MECHANISMS TO ENABLE TRANSITION TO THE BRICS MONETARY UNION

Abstract

Objective preconditions for creation of new transnational monetary unions including countries integrated into the modern world monetary system are studied; the need and feasibility of establishing new integrative monetary and payment unions under conditions of the dollar hegemony in the world monetary system and new global challenges are substantiated. The paper examines the factors creating the objective basis for gradual develpment of the payment and monetary integration of the BRICS countries and identifies respective groups of macroeconomic and special factors. Based on the statistical and comparative analyses of the identified groups it is concluded that objective preconditions for the step-by-step formation of the BRICS payment and monetary union have been developed. The principal stages and directions that enable establishment of the integrative monetary union of the BRICS countries are identified; the institutional and functional structure of the monetary union is proposed. The factors that hinder the establishment of the BRICS payments and monetary union are highlighted.

Keywords

• international monetary system
• brics countries
• economic sanctions
• payment and monetary integration
• macroeconomic and special integration factors
• new development bank
• brics monetary fund