Feasibility study of de-dollarization in the Iranian economy based on membership in the BRICS organization.

پژوهش نامه ایرانی سیاست بین الملل

Article 11, Volume 12, Issue 2 - Serial Number 24, June 2024, Pages 241-268   

Document Type: Original Article

DOI: 10.22067/irlip.2024.83350.1409

Author

Abolghasem shahriari^*

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

Iran; BRICS; De-dollarization; Time series

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