India’s External Affairs Minister S. Jaishankar addressed misconceptions regarding BRICS’s stance on de-dollarisation, asserting diverse positions within the group. He affirmed India’s commitment to promoting the rupee internationally while maintaining positive relations with the US dollar. Jaishankar emphasized India’s efforts to establish frameworks for rupee-based transactions and the importance of economic cooperation with the United States for global financial stability.
India’s External Affairs Minister, S. Jaishankar, addressed speculation regarding the potential for BRICS nations to develop an alternative currency, asserting that there is no unified stance within the group on de-dollarisation. He remarked, “I do not think there is a unified BRICS position on this. BRICS members have very diverse positions on this matter that challenge the assumption of a united position against the dollar.”
The BRICS group, established in 2009, now includes ten nations: Brazil, Russia, India, China, South Africa, Egypt, Ethiopia, Indonesia, Iran, and the United Arab Emirates. It remains a significant international coalition without the participation of the United States, prompting curiosity regarding its stance on global finance.
While discrediting efforts towards de-dollarisation, Jaishankar underscored India’s goal of expanding the international use of the rupee. “We are promoting the internationalisation of the rupee because we are actively globalising India,” he stated, noting the increase in Indian citizens living abroad and expanding trade relations as factors contributing to the rupee’s international growth.
Jaishankar elaborated on the existing frameworks for rupee-based transactions with several nations, especially those strained by hard currency shortages. He affirmed, “We have established mechanisms for cashless payments between India and other countries to support trade settlements.”
Furthermore, he emphasized that India does not perceive the US dollar as a barrier to its growth, stating, “We have no issue with the dollar, and our relations with the US are at their best. We have no interest in undermining the dollar.”
In light of ongoing tensions, former US President Donald Trump has repeatedly warned BRICS nations against creating a competing currency, threatening significant tariffs. He commented, “There is no chance that BRICS will replace the US dollar, and countries trying to do so should expect tariffs.”
Jaishankar also addressed the implications of Trump’s foreign policy shift, indicating it was predictable based on prior commitments. He suggested that these developments align with India’s strategic interests, highlighting, “This is something that suits India.”
Moreover, he acknowledged India’s historical diplomatic rapport with the United States, adding, “We have never had any issues with American presidents in recent times. There is no burden this relationship carries.”
Finally, Jaishankar reaffirmed India’s dedication to fostering economic collaboration with the US, which he sees as essential for global financial stability. “Strengthening the international financial system should be our priority… Both strategic assessments and our understanding of the international economy will guide our perspectives,” he stated. Through these remarks, he reinforced India’s pragmatic approach to global finance, emphasizing the push for the rupee’s internationalisation without challenging the dollar’s dominance.
In summary, India is striving to increase the international presence of the rupee while maintaining a positive relationship with the US dollar. Jaishankar clarified that there is no consensus among BRICS nations on moving away from the dollar, emphasizing India’s focus on cooperative economic relations with the US. Furthermore, he highlighted India’s robust diplomatic ties and strategic interests in fostering a multipolar world, which aligns with its long-term objectives.
Original Source: m.economictimes.com
