BRICS Currency: Is India Backing Out? Doubts Rise Over Dollar Alternative
The dream of a BRICS currency challenging the US dollar is facing headwinds. Recent reports suggest India is reconsidering its support for a shared currency among the BRICS nations (Brazil, Russia, India, China, and South Africa). This raises significant questions about the future of the proposed currency and its potential to reshape global trade.
India\'s Hesitation: What\'s Behind the Shift?
Analysts say India has backed away from supporting the creation of a shared currency among BRICS members and is moving toward promoting trade with the Indian rupee. This strategic shift potentially stems from concerns about ceding monetary policy control and the complexities of aligning diverse economic interests within the BRICS bloc.
Russia\'s Push for Alternatives: The "BRICS Bridge"
While India appears to be cooling on the idea of a unified currency, Russia remains a strong proponent. Russia urged members to take concrete steps toward establishing the “BRICS Bridge,” a proposed international payments system. This initiative was proposed as a means to bypass the dollar and facilitate trade between BRICS nations.
No BRICS Currency in Sight: Official Statements from India
Further solidifying the doubt surrounding a BRICS currency, India’s External Affairs Minister, S. Jaishankar in a press conference held on Monday, 3rd July, 2025, said that India has no plans for a BRICS currency. He declared a clear stance against the immediate creation of a shared currency, emphasizing India\'s focus on promoting the use of the Indian Rupee in international trade.
BRICS and the Dollar: A Continued Effort to Reduce Reliance?
Are BRICS and India trying to replace the dollar as the main global trade currency? While a unified currency may be off the table for now, the broader goal of reducing reliance on the US dollar within the BRICS economic sphere persists. Initiatives like the "BRICS Bridge" and bilateral trade agreements using national currencies represent ongoing efforts to diversify payment systems and lessen dependence on the dollar.
BRICS Currency and Trump\'s Tariffs: An Added Layer of Complexity
Political factors also play a role. President Donald Trump has again threatened 100% tariffs on BRICS nations, highlighting the potential for external pressures to influence BRICS economic policy and cooperation. These threats could further incentivize BRICS members to explore alternative payment systems and reduce their vulnerability to US economic policy.
Where Does the BRICS Currency Stand Now?
In conclusion, while the initial enthusiasm for a BRICS currency may have waned, particularly with India\'s apparent shift in focus, the conversation surrounding alternative payment systems and reduced dollar dependence remains active. The future of BRICS financial cooperation is uncertain, but the underlying motivation to diversify and strengthen economic ties persists.