BRICS MEMBERSHIP AND CURRENCY INTERNATIONALIZATION: SOUTH AFRICA'S RAND IN INTRA-BRICS SETTLEMENTS

The marginal use of the South African Rand (ZAR) in intra-BRICS trade settlements presents a critical gap in the broader agenda of de-dollarization. This study investigates the influence of bilateral trade volume, exchange rate volatility, and BRICS trade policy coordination on the share of ZAR used in settlements among BRICS countries. Using a quantitative panel data design, the study covers Brazil, Russia, India, and China over the period 2018 to 2023. Data were sourced from UN COMTRADE, SARB, IMF, and BRICS communiqués, with ZAR share proxied from SWIFT and SARB reports. Descriptive statistics, correlation analysis, diagnostic tests, and fixed effects regression were employed for empirical validation. The results reveal that higher bilateral trade volumes significantly increase the likelihood of ZAR being used in settlements. Exchange rate volatility has a negative impact, discouraging ZAR adoption, while stronger BRICS trade policy coordination positively influences local currency usage. The findings align with the Optimum Currency Area (OCA) theory, emphasizing trade integration and policy alignment. The study recommends that South Africa strengthen trade relations, stabilize its currency, and play a proactive role in BRICS policy harmonization to enhance ZAR internationalization.