Research of the ways of development and challenges of the mechanism of settlements in national currencies within the framework of BRICS

Abstract

This article is devoted to the study of the development directions and challenges of implementing settlement mechanisms in national currencies using the example of the BRICS member countries. In the context of global financial instability and growing dependence on traditional currencies (for example, the US dollar), the authors aim to analyze the possibilities of switching to settlements using national currencies, which can help reduce currency risk and strengthen the economic sovereignty of states. In the "Introduction" section, the relevance of the problem is substantiated, and the need to reform settlement systems in the light of changing international economic realities is emphasized. The main prerequisites for the development of national currencies are indicated, among which is the desire of the BRICS countries to expand their international influence and reduce dependence on external financial flows. The methodological part of the work uses an integrated approach, including comparative analysis of economic indicators, regression modeling and analysis of institutional mechanisms operating in the BRICS countries. The empirical base of the study was formed using statistical data from international financial organizations, official publications of national central banks, and expert assessment materials. The results of the study demonstrate that the transition to settlements in national currencies can significantly strengthen the financial stability of the BRICS countries, but this process is accompanied by a number of significant challenges. The main problems include the limited liquidity of national markets, the underdeveloped infrastructure of interbank systems, as well as institutional barriers related to the heterogeneity of legal norms and regulatory practices. The authors identify key areas for further reforms: improving the legislative framework, developing financial technologies, and deepening cooperation between central banks. The Discussion section analyzes the prospects and potential risks of switching to settlements in national currencies. Recommendations for government agencies on optimizing settlement mechanisms are proposed, and directions for future research aimed at expanding the empirical base and in-depth analysis of interregional interactions are identified. The result of the study is the conclusion that, in overcoming these challenges, the transition to national currencies can become an important factor in the sustainable economic development of the BRICS countries.