While some BRICS members are pushing for a payment system to replace the US dollar, India has said it has no intention of undermining the role of the greenback.
This is a statement by Indian Foreign Minister Subrahmanyam Jaishankar at the Chatham House Research Institute (UK) during his 6-day trip to the UK and Ireland.
Mr. Jaishankar emphasized that the USD is a "source of international economic stability" and India "never had a problem" with the role of the greenback.
This statement contrasts with the stance of China, Russia and Brazil - countries that are looking to reduce their dependence on the USD in international payments.
Since the global financial crisis in 2008, China has been actively promoting the yuan as an alternative to the US dollar, signing many currency exchange deals with trade partners.
Russia, which has been subject to repeated sanctions from the West following the Ukrainian conflict, has a stronger incentive to de-dollarize and escape the US-dominated financial system.
Meanwhile, Brazilian President Luiz Inacio Lula da Silva has repeatedly called on BRICS to develop an independent payment system.
At last year's BRICS summit, Chinese President Xi Jinping emphasized the "urgence" of reforming the global financial system.
However, the lack of consensus within BRICS has caused many obstacles for this plan. With India publicly rejecting the idea of replacing the US dollar, the future of a common BRICS currency seems increasingly distant.
The US is closely monitoring all BRICS moves. President Donald Trump has repeatedly warned that if BRICS seeks to replace the US dollar, it will face a 100% or even 150% tariff when exporting goods to the US.
After a recent meeting with Indian Prime Minister Narendra Modi at the White House, President Donald Trump described the relationship between the two countries as at its best stage in history. This further strengthens India's stance of not participating in efforts to wean off the USD.
According to SCMP, in addition to financial factors, the complicated relationship between India and China is also a reason why New Delhi is not interested in Beijing's initiative. The two neighbors still have many disagreements, especially the border dispute in the Himalaya.
Although the two sides have reached some agreements to improve relations, issues such as China's giant hydropower dam project on the Brahmaputra River are still hot spots.
