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May 25, 20260 citationsOpen Access

Towards national currency usage in international transaction settlements: specific experiences in BRICS: the case of South Africa

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HCHuman Sciences Research Council

Key Points

  • The aim is to evaluate the conditions necessary for a currency to function as a reserve currency, focusing on the BRICS nations.
  • Analysis of the national financial market characteristics in BRICS countries, particularly South Africa.
  • Examination of the long-term efforts and factors influencing the renminbi's ascension to reserve currency status.
  • National financial market depth is crucial for reserve currency status, but not the only factor.
  • Demonstrated that the renminbi achieved reserve currency status after years of efforts, highlighting challenges faced by other currencies.

Abstract

The breadth and depth of the national financial market is a necessary benchmark indicator of the ability of a currency to be utilized as a reserve currency. However, it is not a sufficient condition to achieve this status as other factors play an equally important role as was demonstrated in the final ascension of the Chinese renminbi to international reserve currency status in 2016 after many years of trying.

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Cite This Study

Human Sciences Research Council (2026) studied this question.

synapsesocial.com/papers/6a13e8d20e02ee3982d335b6https://doi.org/10.14749/32382438
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