BRICS chair India opposes common currency to counter US dollar
Over the past few years, some BRICS nations, particularly Russia and China, have favoured an alternative to the US dollar or creating a dedicated BRICS currency.
India, the current chair of the BRICS grouping of emerging economies, said yesterday (7 August) that it does not support introducing a separate common currency for trading among member countries.
"India is not in favour of a BRICS currency. We do not support the introduction of any such BRICS currency scheme; India opposes it," Indian Commerce Minister Piyush Goyal told reporters in Jaipur at the end of a two-day meeting of BRICS trade and industry ministers.
BRICS comprises 11 countries: Brazil, China, Egypt, Ethiopia, India, Indonesia, Iran, Russia, Saudi Arabia, South Africa and the United Arab Emirates.
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Goyal's remarks assume significance as US President Donald Trump warned BRICS countries in 2024 against any move to replace the US dollar.
Over the past few years, some BRICS nations, particularly Russia and China, have favoured an alternative to the US dollar or creating a dedicated BRICS currency.
The meeting brought together trade ministers, vice ministers, heads of delegation and officials from member countries.
They agreed on the need for opening up markets, economic diversification and the internationalisation of micro, small and medium enterprises.
Under the "Jaipur Consensus" adopted at the meeting, delegates agreed to study a BRICS invoice-discounting mechanism and established credit-assessment guidelines for export-focused smaller businesses.
These guidelines will evaluate companies based on cash flow rather than physical assets or collateral, aiming to narrow a $2.5 trillion global trade finance gap.
The statement highlighted a work plan on global value chains establishing an action plan for 2026–2030, which includes forming a BRICS technical council, launching the BRICS Connect initiative and conducting joint supply chain studies.
Additionally, member countries are exploring strategic investment and supply chain platforms focused on critical sectors such as pharmaceuticals and food security.
The meeting also agreed on BRICS principles to facilitate digitally delivered services across borders to enhance cooperation.
These outcomes place services and value chains at the forefront of the next decade of BRICS cooperation alongside balanced and expanding trade among members.
Ministers also agreed to submit the strategy for BRICS economic partnership 2030 – spanning the multilateral trading system, trade in services, the digital economy, industry, innovation and technology, financial cooperation and sustainable development – together with the priorities of the upcoming BRICS summit in New Delhi in September, for endorsement.
