An Analysis of the Potential of BRICS Currencies in Challenging the Dominance of the US Dollar in the Perspective of Islamic Monetary Economics: Advantages and Challenges^ syaifullah, Sri Herianingrum, Sukran
Universitas Airlangga
Abstract
This research aims to analyze the potential of BRICS currency in challenging the dominance of the US dollar from the perspective of Islamic monetary economics. The study examines the advantages and challenges associated with the emergence of BRICS currency as an alternative to the US dollar in international trade and finance. The research is conducted within the framework of the principles of Islamic monetary economics, which emphasize justice, stability, and sustainability in economic transactions. A qualitative methodology is used as the research approach, as this study is descriptive in nature and employs analytical analysis. The use of a qualitative design aims to build understanding through explanations sourced from various literature such as journals, books, and articles. To address the research questions, exchange rates and foreign policies are taken as analytical tools. After conducting the research, it is found that the potential emergence of BRICS currency is driven by the long-standing dependence on the hegemony of the US dollar, which is deemed advantageous only to the US and not to developing countries. BRICS currency is considered less potential due to the need for a large financial infrastructure and the ability to compete with the World Bank. Therefore, in pursuing this plan, BRICS should consider the presence of an Islamic financial system, a currency that embodies the principles of creating a just, sustainable, and independent financial system for society
