BRICS countries are not interested in weakening the US dollar, Reuters quoted Indian Foreign Minister Subrahmanyam Jaishankar as saying at an event in Doha, Qatar on December 7.
The Indian diplomat's remarks came a week after US President-elect Donald Trump asked BRICS members, which include emerging economies such as India, Russia and China, to pledge not to create a new currency or support one that could replace the US dollar. Failure to do so would result in 100% tariffs on BRICS countries.
Also related to this issue, Bloomberg reported that the governor of India's central bank said that there has been no decision by the BRICS group on creating a common currency to reduce the use of the USD.
"The BRICS currency is an idea proposed by one of the members and has been discussed but no decision has been taken yet," said Reserve Bank of India Governor Shaktikanta Das.
He pointed out that the geographical dispersion of BRICS members is noteworthy while the eurozone is geographically contiguous.
India is working to encourage the use of rupees in cross-border payments to reduce its dependence on the US dollar, Bloomberg reported. The move is part of Prime Minister Narendra Modi’s efforts to boost India’s international presence and position the country as a manufacturing alternative to China in the post-COVID-19 era.
"We have not taken any steps to de-dollarize. We want to reduce the risks in India's trade because dependence on one currency can sometimes cause problems due to appreciation or depreciation," said Reserve Bank of India Governor Shaktikanta Das.
The BRICS grouping comprises Brazil, Russia, India, China and South Africa and expanded this year to include Iran, the United Arab Emirates, Ethiopia and Egypt. BRICS has also discussed de-dollarization at its 2023 summit.
