India Rules Out De-Dollarisation in BRICS, Emphasises Local Currency Trade

India reaffirmed at its weekly media briefing that de-dollarisation is not part of its financial agenda within BRICS, signalling a cautious posture amid evolving global currency dynamics.

External Affairs Ministry spokesperson Randhir Jaiswal reiterated that while BRICS members have discussed facilitating cross-border transactions in local currencies, there has been no inclination toward abandoning the U.S. dollar or creating a unified BRICS currency. This position aligns with India’s longstanding policy of economic pragmatism and strategic autonomy, a stance consistently emphasized by senior officials and analysts alike.

India’s message contrasts with broader talk of de-dollarisation gaining momentum across the bloc. At the 17th BRICS Summit in Rio de Janeiro, member nations did explore increasing trade settlement in local currencies, but proposals for a common currency remained exploratory and far from realization. Economists and policymakers point out structural challenges: unlike the European Union, BRICS lacks a unified economic zone, monetary policy coordination, or governance mechanisms necessary for launching a shared currency.

India is focusing on bilateral currency arrangements, particularly through the RBI’s ongoing push to internationalise the rupee. The central bank has already inked operational agreements with nations such as the UAE and is in talks with others like the Maldives to facilitate trade in rupees. These steps reflect India’s preference for risk-management strategies over ideological financial divergence using local currencies to bolster trade resilience, not to displace the dollar.

India’s stance also echoes its broader economic diplomacy objectives: maintaining flexibility, safeguarding monetary policy sovereignty, and preserving strong trade linkages across both developed and developing economies. While the global shift toward multipolar currency mechanisms continues, New Delhi appears determined to chart a measured course embracing innovation without upending the established financial order.

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