Significance of BRICS Financial Institutions at the Stage of an Alternative Monetary System Formation

The paper is devoted to the study of problems associated with the formation of new financial institutions of BRICS. Based on the results of the study, a number of conclusions were made. First, the emergence of the BRICS New Development Bank will allow participating countries to finance and lend to their programs and entire sectors of the economy on a transparent and equal financial basis avoiding the discriminatory and biased approach used in the current international monetary system based on the US dollar. Second, this institute will contribute to solving a complex issue of the form of settlements within the BRICS between its member states. Along with this, the study justifies the need for settlements in national currency, which is objectively due to existing, as well as developing trade relations, the structure of export-import operations and an increase in investment activity of the BRICS member states. The author justifies the idea of creating a future BRICS’ R5 currency, uniting regional currencies on a platform that allows connecting the largest emerging markets of these countries. In the future, this will expand the scope of R5 circulation, nominate loans (bonds) in R5, accumulate it in the reserves of the BRICS countries, etc. The BRICS financial institutions that have already been establishe and are still being created, taking into account positive and negative experience, increase confidence in this association in the world; indicate significant potential, making it attractive to other jurisdictions; make it possible to increase its influence on the creation of an alternative monetary world financial system.

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