India Upholds Dollar Dominance Amid BRICS Currency Controversy
India remains committed to the US dollar, distancing itself from BRICS efforts to reduce dollar dependence. External Affairs Minister Jaishankar clarified this position amidst former President Trump’s threats of tariffs against members considering a common currency. Despite calls from leaders like Putin for de-dollarisation, India prioritizes multilateral cooperation over challenging the dollar’s dominance.
India has asserted that it will not follow any efforts within BRICS to diminish reliance on the US dollar, despite the group’s evolving agenda over the years. Indian External Affairs Minister S. Jaishankar emphasized that undermining the dollar is not aligned with India’s economic or strategic policies. He confirmed that this stance has been communicated to US officials during discussions.
In his response to inquiries regarding former President Trump’s warnings, Jaishankar noted that BRICS, comprising nations at disparate development levels and interests, harbors varied perspectives on contemporary matters. He pointed out that the focus of BRICS meetings is to find common ground while bolstering multilateral cooperation.
Former President Trump has been critical of BRICS, declaring that the group is ‘dead’ and warning of a potentially imposing 100% tariffs on imports from BRICS nations should they attempt to introduce a shared currency. Trump has articulated that any moves to rival the dollar’s supremacy would lead to substantial economic consequences.
Russian President Vladimir Putin has previously advocated for a shift away from the dollar, urging BRICS members to engage in trade using their national currencies and enhance financial collaboration. This concept of reducing dollar dependence was reinforced during a recent BRICS foreign ministers’ meeting in Nizhny Novgorod, Russia, where they committed to increasing local currency transactions within the bloc.
In summary, India’s clear stance against any reduction of dollar reliance within BRICS underscores its commitment to economic stability. Amidst Trump’s aggressive rhetoric and promised tariffs, it is evident that member nations hold diverse viewpoints regarding their financial strategies. Moving forward, BRICS aims to foster cooperation while navigating the complexities of global economic dynamics.
Original Source: m.economictimes.com
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