NEW DELHI: BRICS has no plans to introduce a common currency, with India making clear that the grouping is instead focused on expanding trade in national currencies to cut transaction costs and reduce reliance on the US dollar.
Ministry of External Affairs Secretary (Economic Relations) Sudhakar Dalela said discussions on settling bilateral trade in local currencies were gaining momentum, but stressed that a unified BRICS currency was not on the agenda.
“Local currency settlement is a practical mechanism to reduce transaction costs in bilateral trade… there is no proposal in the BRICS for a BRICS currency as of now,“ Dalela told reporters during a briefing yesterday, directly addressing speculation over the creation of a shared monetary unit.
He said discussions on settling trade in national currencies had been underway within BRICS for more than a decade.
Dalela said the mechanism was aimed at strengthening economic integration among member states, streamlining direct interactions with the global business community and addressing the aspirations of the Global South.
He said targeted frameworks were being developed bilaterally and within BRICS to address the issue, primarily through the finance ministers and central bank governors’ track.
The push for greater use of local currencies is part of BRICS’ broader effort to reduce dependence on the US dollar in international trade, reserves and financial settlements.
Rather than seeking an overnight replacement for the dollar, the approach is focused on gradually creating a less dollar-dependent financial system that could help member economies shield themselves from external shocks.
On geopolitical developments in West Asia and the Middle East, Dalela pointed to the consensus reflected in Paragraph 28 of the New Delhi Declaration as a key outcome of India’s chairship.
He said despite BRICS members having diverse economic systems and development experiences, they had managed to establish a platform for transparent discussions and reach common ground on regional stability.
“Dialogue and diplomacy should be the guiding parameter for addressing any conflict… that is the only way to build lasting peace, security, and stability,“ he said, adding that BRICS members shared an agreed approach centred on objective dialogue.
Reflecting on India’s role as chair across 22 distinct ministerial tracks, Dalela said strong participation across sectors demonstrated New Delhi’s transparent leadership and organisational credibility.
“It speaks of India’s convening power, the trust that BRICS members have on India’s ability to steer discussion in a very transparent and objective manner, and to build bridges and forge consensus,“ he said.
He added that through open dialogue and a focus on common ground, India continued to facilitate BRICS as a platform to amplify the aspirations and requirements of the Global South on the world stage.