S. Jaishankar addresses BRICS nations’ stance on de-dollarisation, stating there is no common position. He emphasizes India’s commitment to promoting the rupee internationally while maintaining strong relations with the US dollar. Jaishankar also comments on Trump’s warnings against BRICS currency alternatives, highlighting the importance of economic cooperation with the United States.
External Affairs Minister S. Jaishankar has addressed speculation regarding the BRICS nations potentially moving towards an alternative currency. He clarified that there is no common position among BRICS members about de-dollarisation. “I would also say in all honesty, I don’t think there’s a unified BRICS position on this,” he stated, emphasizing the diverse viewpoints within the group, which now includes ten nations.
Established in 2009, BRICS comprises Brazil, Russia, India, China, South Africa, Egypt, Ethiopia, Indonesia, Iran, and the United Arab Emirates, and notably excludes the United States. This absence has fueled speculation regarding its stance on global financial systems.
Despite rejecting the idea of replacing the dollar, Jaishankar reiterated India’s commitment to enhancing the international use of the rupee. He remarked, “We are clearly promoting the internationalisation of the rupee because we are actively globalising India.”
Jaishankar indicated that India has created mechanisms for rupee-based transactions with various countries, particularly those experiencing hard currency shortages. He stated, “In many cases, we have established mechanisms for cashless payments between India and other countries… especially in nations facing a shortage of hard currency, especially dollars.”
He further clarified that India does not view the US dollar as a hurdle to its growth. “We have no issue with the dollar, and our relations with the US are at their best. We have no interest in undermining the dollar,” he asserted.
Jaishankar’s comments come amid US President Donald Trump’s stern warnings to BRICS nations regarding attempts to launch an alternative currency. Trump emphasized that any effort to supplant the dollar would face dire economic repercussions, stating, “There is no chance that BRICS will replace the US dollar in international trade… any country that tries should say hello to tariffs, and goodbye to America!”
Regarding US foreign policy under Trump, Jaishankar noted the expected shift, saying, “If you actually tracked it… you know, political leaders… do much of what they promised to do.” He remarked that Trump’s administration is shaping a multipolar world, aligning with India’s strategic interests.
He highlighted the strength of India’s diplomatic ties with the US, noting, “We have never had any issues with American presidents, at least in recent times.”
Jaishankar emphasized India’s priority in reinforcing economic cooperation with the United States, stating, “We do believe today that working with the United States and strengthening the international financial system and economic system is actually what should be the priority.”
In conclusion, Jaishankar’s remarks illuminate India’s practical approach to global finance. While advocating for the rupee’s increased international presence, India intends to avoid challenging the dollar’s supremacy. Instead, it seeks to foster enhanced economic collaboration with the US and promote a multipolar global order that aligns with its strategic ambitions.
In summary, S. Jaishankar articulates India’s proactive stance towards promoting the internationalisation of the rupee while simultaneously recognizing the dollar’s prevailing dominance. The lack of a unified BRICS stance on de-dollarisation underscores the complex dynamics within the group. Furthermore, India aims to strengthen ties with the United States, positioning itself within a multipolar world, thereby aligning its economic strategies with global realities.
Original Source: m.economictimes.com
