In a surprising move for the global financial market, India has rejected the idea of a common BRICS currency.
Business Today reported that at the IT-BT Round Table 2025 Forum organized last week by two leading Indian magazines, India Today and Business Today, Indian Industry and Trade Minister Piyush Goyal firmly stated: "We have made it clear: India does not support any common currency of BRICS. Imagine us sharing money with China. That's impossible!"
India's strong stance is marking a major question mark for BRICS's ambition to reduce dependence on the US dollar - a bloc of Brazil, Russia, India, China, South Africa, Iran, Ethiopia, the United Arab Emirates and Indonesia.
Binance page points out the reasons why India says no to the future BRICS common currency.
India wants to maintain control of its monetary policy. A common currency could cost the country the right to self-determination in major economic decisions.
So big a economic gap: BRICS includes economies with different characteristics. While China is a producing power, Russia depends on oil and gas exports, India has an economy that relies on domestic services and consumption. The application of a common currency will face many obstacles in balancing benefits.
Risk of instability: India's financial system is tightly tied to the USD and other major currencies. Replacing it with an unverified BRICS currency could cause major volatility, affecting trade and investment.
Too complicated to implement: A common currency requires a tightly linked financial infrastructure, while BRICS countries have yet to reach the level of integration like the EU. The establishment of a common payment system, foreign exchange reserves and monetary policy control mechanism will take many years, if not impossible.
Although BRICS is looking to "de-dollarize" global trade, India seems to have chosen a safer path - continuing to stick with the greenback.
The USD is still considered the most reliable currency in international trade and investment. Continuing to use the USD helps India avoid risks from a new unverified monetary system.
As the US becomes an important trade partner of India, keeping the US dollar-based financial system unchanged helps the country benefit from investment flows and technology cooperation.
With India - one of the two largest economies in the bloc - withdrawing, the likelihood of success of the BRICS common currency becomes fragile.
Although the common currency is not feasible, BRICS countries can promote domestic currency transactions or develop a BRICS payment system to replace SWIFT to gradually reduce dependence on the US dollar.
