India Says No Proposal for a BRICS Currency ‘As of Now’
MEA says local-currency trade settlements remain under discussion as bloc adopts New Delhi Declaration on global trade
NEW DELHI — There is no proposal for a common BRICS currency “as of now,” India’s Ministry of External Affairs said Saturday, while emphasizing that member countries have been discussing the use of local currencies for bilateral trade.
Sudhakar Dalela, MEA secretary for economic relations, made the remarks during a press briefing following the BRICS Summit.
“There is no proposal in the BRICS for a BRICS currency as of now,” Dalela said.
He said discussions on trade settlements using local currencies have been underway for some time, describing the approach as a practical way to reduce transaction costs in bilateral trade.
“We believe local currency settlement is a practical mechanism to reduce transaction costs in bilateral trade,” Dalela said, adding that the mechanism is being encouraged as a complement to the global payment and settlement system.
Dalela also outlined several areas of cooperation highlighted during India’s BRICS chairmanship, including the BRICS MSME cooperation portal, global value chains and logistics frameworks. Cooperation on digital public infrastructure, science and research and startups were also among the areas highlighted.
According to Dalela, more than 350 meetings were held during India’s year as BRICS chair, with activities taking place in more than 30 cities across the country. He described the effort as a “whole-of-nation effort.”
The BRICS Summit produced 150 practical outcomes across four broad pillars, he said. Food and health security, as well as cooperation on mental health, were among the areas identified as significant outcomes.
The comments on currency came as BRICS countries unanimously adopted the New Delhi Declaration, which expressed concern about the increasing use of unilateral tariffs and non-tariff measures that distort trade and are inconsistent with World Trade Organization rules.
The declaration reaffirmed the group’s support for reform of the WTO and for a multilateral trading system described by the members as non-discriminatory, open, equitable, transparent, fair, inclusive, predictable and rules-based, with the WTO at its center.
The BRICS nations also expressed support for the aspirations of the Global South to become more fully integrated into the multilateral trading system. The declaration backed Ethiopia and Iran in their bids to join the WTO and acknowledged China’s expansion of zero-tariff treatment to 53 African countries with which it maintains diplomatic relations.
The issue of local-currency trade has also been raised by India’s Commerce and Industry Minister Piyush Goyal. On Friday, Goyal called on BRICS members and partner countries to deepen economic cooperation by opening markets, simplifying regulatory procedures, connecting payment systems and encouraging trade settlements in local currencies.
The latest comments from the MEA clarify that while BRICS members continue to explore mechanisms to facilitate trade outside traditional currency arrangements, India is not currently proposing the creation of a single BRICS currency. (Source: IANS)
