India not pursuing shared BRICS currency, analysts say

 

FILE – Indian twenty rupee currency notes are displayed at a roadside currency exchange stall in New Delhi, May 24, 2024. India, which adopted a policy in 2023 to support using the rupee more frequently for foreign trade, is not supporting a shared BRICS currency, analysts say.

Aside from Russia, other countries such as Malaysia, Kenya, Sri Lanka and Bangladesh also have agreed to facilitate trade in rupees. Such efforts however are modest, and India’s international trade is still dominated by the dollar.

Indian External Affairs Minister Jaishankar Subramanian has said that moving away from the U.S. currency is not part of New Delhi’s economic policy.

“We have never actively targeted the dollar. That\’s not part of either our economic policy or our political or strategic policy,” he said responding to a question on dedollarization at the Carnegie Endowment for International Peace in Washington in October.

But in an indirect reference to Russia, he said that India had to look for “workarounds” when trade in dollars with some partners became difficult.

“It was the U.S. actions targeting Russia that made countries search for mechanisms and options to the dollar. It was not to dislodge the dollar’s position,” according to Ajay Srivastava, of the Global Trade Research Initiative.

However, he said Trump’s threat to impose 100% tariffs on products coming from countries adopting a BRICS currency makes the idea of such a potential new currency “unrealistic and more symbolic than practical.”

 

By：VOA