BRICS Economic Development: The Role of Central Banks in Shaping Monetary Policy

Central banks play a key role in achieving long-term economic growth goals through currency policy instruments. Modern economic conditions require a rethink of classical approaches to regulating foreign exchange markets, especially in the light of global financial crises. The BRICS countries have accumulated a unique experience in the effective use of currency instruments to support the sustainable growth of their economies. The purpose of this article is to evaluate the currency policy of the BRICS countries in terms of its impact on the growth of national economies. Methods: comparative historical analysis and case-study analysis. Results: the most effective measures have been identified that have made it possible to ensure the stability of national currencies and maintain economic stability in order to achieve the long-term growth goals of the national economies of the BRICS countries: For China, interventions and administrative controls over the convertibility of the yuan have shown the best results; India, using combined measures — interventions and rate changes — has managed to reduce volatility; Brazil has been most successful through spot market operations and currency swap programs.; South Africa’s monetary policy has confirmed the need for reserve accumulation; in Russia, a combination of interventions and stricter controls has allowed for a much faster stabilization of the exchange rate. A set of exchange rate management measures based on the experience of the BRICS countries is proposed for the Russian economy.: interventions through state-owned banks, the use of derivatives and currency swaps (as in Brazil), periodic intervention in low-volatility pricing to stimulate investment inflows (as in India), trade flow control and administrative measures (as in China). The analysis shows that the combination of direct and indirect instruments reduces volatility, strengthens investor confidence and increases the stability of currency regimes. China and Brazil show shorter time to stabilize the exchange rate in the face of external shocks, while India requires a longer adjustment period and the currencies of South Africa and Brazil remain the most vulnerable. The effectiveness of policy is determined by the scale of intervention and the ability of the central bank to respond quickly and independently to changing conditions, which is critical for long-term economic sustainability.

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