NEW DELHI: There is no proposal to create a BRICS currency, India said on Saturday after the conclusion of the BRICS Leaders’ Summit, while stressing that the grouping is instead exploring greater use of local currencies for trade and payments.
“There is no proposal for a BRICS currency as of now,” MEA Secretary Sudhakar Dalela said, clarifying India’s position amid growing global debate over de-dollarisation and efforts to reduce dependence on the US dollar in cross-border trade.
Dalela said BRICS countries have been discussing ways to expand intra-BRICS trade and deepen engagement with the global business community.
“All these questions about trade in local currency, the purpose is how we can do more with BRICS trade and how we can engage with the global business community,” he said.
He said BRICS leaders have agreed that local currency settlement is a practical mechanism that could help reduce transaction costs in bilateral trade while providing businesses and countries with an additional option for cross-border payments and settlements. “We believe local currency settlement is a practical mechanism to reduce transaction costs in bilateral trade,” Dalela said.
The clarification comes amid growing discussions on alternatives to the dollar-dominated global financial system, particularly against the backdrop of geopolitical tensions, sanctions risks and concerns over disruptions to international payment channels.
Sources also said there are currently no plans to incorporate a central bank digital currency (CBDC) into a BRICS payment ecosystem. Instead of creating a common monetary unit, BRICS countries are examining ways to increase the use of their respective national currencies in bilateral and multilateral trade settlements.
Dalela said discussions on local currency trade were not new and that member countries were working to strengthen trade flows and make payment and settlement mechanisms more efficient. Greater use of local currencies could also create opportunities for broader global payment and settlement system and facilitate trade across nations, he said.
