Paradigm Shift in the Making? Geopolitical Challenges and Institutional Changes in the International Monetary System: From Neoliberalism to a Pluralist Multipolar Financial Order

This paper examined the critical challenges facing the international monetary system, arguing that they have created conditions for a shift from a neoliberal framework to a pluralist multipolar financial order. Using an interdisciplinary approach that blends international law and international relations, the paper provides an analysis of the current Bretton Woods-based international monetary system (IMS). It claims the IMS operates within a political order marked by American hegemony, neoliberal economic ideology, US dollar dominance, and a legalised monetary order. The paper develops a three-element framework of strategic undermining, financial statecraft and financial nationalism to interpret geopolitical financial competition between the United States and China, and assess the institutional challenges to the global monetary order. In conclusion, it advocates for a new pluralist multipolar order that accommodates various monetary regimes across different levels. For this order to emerge and endure, a minimum level of multilateral cooperation is essential. The paper proposes a multilateral framework for the future monetary order, based on the following: (1) allowing nations to consider national security in financial regulations; (2) enhancing multilateral coordination for a global financial safety net; (3) protecting global financial infrastructure for seamless functioning of payment systems; and (4) supporting development finance for least developed countries. © 2025 The Author(s).