September 2025 (published: 15.09.2025)
Number 3(62)
UDC 336.02
DOI 10.17586/2310-1172-2025-18-3-3-16
Effectiveness of mechanisms for stabilizing national currencies with exchange rate
policy instruments in BRICS countries and potential for future cooperation
Reference for citation: Vasyukov E.A. Effectiveness of mechanisms for stabilizing national currencies with exchange rate policy instruments in BRICS countries and potential for future cooperation. Scientific journal NRU ITMO. Series «Economics and Environmental Management». 2025. № 3. Р. 3-16. DOI: 10.17586/2310-1172-2025-18-3-3-16.
Abstract. In recent years, during increasing instability of the global economy, exchange rate policy has come to play a key role in maintaining macroeconomic equilibrium. The study of its effectiveness in the BRICS countries is becoming especially relevant, where differences in the phases of economic development and the asynchrony of economic cycles create a unique environment for comparative analysis. The central banks of these countries use a wide range of tools – from direct interventions and interest rate regulation to administrative restrictions and derivative transactions – to stabilize exchange rates and stimulate economic growth. In this regard, the goal of the research is to develop recommendations for bringing countries closer together in the monetary and financial sphere. In addition, the importance of coordinating exchange rate policies within BRICS, expanding the use of national currencies in trade and investment, and developing joint financial institutions is growing. The study analyzes the key instruments of the BRICS exchange rate policy and their impact on the volatility of national currencies, and also performs a SWOT analysis of the exchange rate regulation practices of each state. In the context of asynchrony of economic cycles, it has been shown that currency stability largely depends on the ability of central banks to quickly combine direct interventions, derivative transactions, interest rate changes and administrative measures. Quantitative estimates confirm that such an integrated approach reduces short-term fluctuations and forms the basis for long-term macroeconomic stability. The analysis showed that the most effective mechanisms for stabilizing currencies in the BRICS countries are comprehensive measures combining interventions, derivative transactions, interest rate changes and administrative regulation. The examples of China, India, Brazil, South Africa and Russia confirm that the flexible and timely use of these instruments can significantly reduce volatility and accelerate the recovery of exchange rates after external shocks. The SWOT analysis revealed that the high adaptability of currency policy and the variety of measures applied compensate for vulnerability to global risks. However, in the context of growing geopolitical instability and technological challenges, the key areas of development remain strengthening coordination within BRICS, expanding the use of national currencies and digitalization of the financial infrastructure. This will increase the stability of monetary systems and create the basis for sustainable economic growth in the long term.
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Keywords: Monetary and exchange rate policy of central banks, BRICS, exchange rate volatility, analysis of exchange rate relations, SWOT analysis.
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