EAM S. Jaishankar clarified that BRICS does not have a unified position on de-dollarisation. India aims to promote the global use of the rupee without undermining the US dollar. Despite speculation, India maintains strong relations with the US and prioritizes economic cooperation. Trump’s policies play a significant role in shaping India’s diplomatic strategy in a multipolar world.
EAM S. Jaishankar addressed the growing speculation regarding BRICS nations creating an alternative currency, stating that there is no unified stance on de-dollarisation within the group. BRICS, which was founded in 2009 and comprises ten nations—Brazil, Russia, India, China, South Africa, Egypt, Ethiopia, Indonesia, Iran, and the United Arab Emirates—has varied positions among its members concerning the US dollar.
Jaishankar emphasized India’s commitment to promote the international use of the rupee without pursuing de-dollarisation. He pointed out that as travel and trade expand, the rupee’s global use will grow. India has implemented systems for rupee-based transactions with several nations, especially where there is a hard currency deficit, facilitating cashless payments and trade settlements.
Despite the efforts to internationalize the rupee, Jaishankar affirmed that India does not perceive the US dollar as an impediment. He noted that India maintains strong bilateral relations with the US and has no intentions of undermining the dollar’s dominance.
Jaishankar’s comments coincide with US President Donald Trump’s warnings against BRICS nations attempting to launch a new currency, asserting serious economic repercussions for those efforts. Trump firmly stated that any country planning to replace the dollar should prepare for significant tariffs and consequences.
Additionally, Jaishankar reflected on the shift in US foreign policy under Trump, which he deemed as aligning with India’s strategic interests toward a multipolar world. He highlighted the absence of issues in India’s relations with recent American administrations, pointing towards a cooperative approach that aims to strengthen global economic stability.
Ultimately, Jaishankar reaffirmed India’s pragmatic approach to global finance, stressing the focus on expanding the rupee’s reach while seeking enhanced economic cooperation with the United States in a multipolar environment.
India’s approach to the rupee’s internationalization showcases a commitment to growing its global economic footprint. However, it remains clear that India seeks collaboration with the US and does not intend to challenge the dollar’s status. The BRICS group lacks a unified stance on currency alternatives, reflecting diverse positions among its members. Jaishankar’s comments highlight India’s strategy of fostering multiple international relationships while navigating evolving global financial landscapes.
Original Source: m.economictimes.com
