India says no common BRICS currency proposal is on the table for now, while pushing greater use of national currencies to boost intra-BRICS trade and cut transaction costs.
India has ruled out any proposal for a common Brics currency “as of now”, with New Delhi instead pushing for greater use of national currencies to facilitate trade among member countries.
Sudhakar Dalela, India’s Brics Sherpa and Secretary (Economic Relations), said on September 12 that a common currency is not currently on the agenda of the grouping. His remarks come amid renewed discussions over Brics efforts to strengthen financial cooperation and reduce dependence on the US dollar.
India has consistently favoured a practical approach to financial cooperation within Brics, focusing on facilitating trade through existing national currencies rather than creating a new currency for the bloc.
The use of national currencies in bilateral trade can help countries reduce transaction and currency-conversion costs, while potentially making cross-border trade faster and more efficient. India has also backed efforts to strengthen payment connectivity among Brics members to facilitate smoother cross-border transactions.
The issue of a common Brics currency has gained prominence in recent years as member countries have explored ways to deepen economic cooperation and reduce reliance on the dollar. However, India’s position has remained cautious, with New Delhi emphasising local-currency settlements and stronger payment systems instead.
More from BusinessThe approach also reflects India’s broader push for greater use of domestic currencies in international trade and more efficient cross-border payment mechanisms.
With Brics membership expanding, financial cooperation has become an important part of the grouping’s economic agenda. Discussions are expected to focus on improving payment infrastructure, increasing trade in national currencies and strengthening financial resilience among member economies.
