The Impact of Dollarization on the Standard of Living in the Brics

The issue of dollarization has remained relevant throughout virtually the entire existence of modern Russia, regardless of its membership in any international organization. It became particularly pressing with the escalation of sanctions against Russia in 2022 and was further reflected at the 2024 BRICS Summit in Kazan. Therefore, the aim of this study is to systematize the experience of dollarization in domestic and international practice and, based on this, to analyze the proposed approaches to de-dollarization that could potentially implement the transition to alternative means of payment and payment systems, including the opportunities and tools created within and by the BRICS association. The subject of this study is the specifics of the dollarization process as a reflection of the quality and standard of living in the BRICS countries. The practical significance of the study’s results lies in its conclusions helping to assess the impact of the transition to alternative means of payment on living standards, depending on the level of transaction costs and the profitability of foreign economic activity based on transactions with friendly countries, including the possibility of using national currencies. The author concludes that the use of alternative liquidity instruments poses significant risks to the Russian economy and the standard of living, making dollarization virtually unavoidable.