India Dismisses De-dollarisation Plans within BRICS, Amid US Trade Tensions

Amid US trade tensions, the Indian Ministry of External Affairs clarified that de-dollarisation is not India's financial agenda within BRICS. Brazilian President Lula suggested a trade currency, facing geopolitical concerns. India's stance focuses on economic diversity, not a single currency or de-dollarisation.

On Thursday, the Ministry of External Affairs (MEA) firmly rejected any claims that India is pursuing de-dollarisation within the BRICS alliance. The official statement emphasized that such moves are not part of India's financial agenda. MEA spokesperson Randhir Jaiswal reiterated the country's position during a weekly media briefing, responding to Brazilian President Lula's suggestion of a BRICS alternative currency amid rising US tariffs on BRICS member countries.

Brazilian President Luiz Inacio Lula da Silva's comments suggested that BRICS members could discuss creating a common trade currency. Lula proposed testing this idea within the group, emphasizing the need for a trade currency unique to BRICS. He expressed openness to the discussion but demanded convincing evidence if the idea proved faulty, as reported by Russia Today.

Lula's currency proposal comes in the wake of trade tensions involving India and Brazil with the United States. Last week, US President Trump imposed an additional 25% tariff on Indian products, increasing the total duty to 50% due to India's continued reliance on Russian crude. Similarly, August will see a 50% tariff on Brazilian imports, with Trump criticizing former President Bolsonaro's trial as a 'witch hunt.'

Despite these trade frictions, India remains committed to engaging with BRICS members on shared interests. External Affairs Minister S Jaishankar confirmed that India has not taken steps to reduce reliance on the US dollar. Instead, India's approach focuses on diversifying trade partners, exploring alternative payment systems, and reducing dependence on a single currency. This strategy is evident in agreements with Russia, the UAE, and the Maldives, aimed at settling trades in local currencies, thereby minimizing dollar conversion and exchange rate risks.

India also opposes the idea of a common currency with China and other BRICS nations, citing geographical divisions and insufficient economic integration. As India's stance emphasizes diversification and risk management, the approach remains grounded in safeguarding national economic and strategic priorities. (ANI)

(With inputs from agencies.)