The Modi government is placing a ledge on the de-dollarization ideals and making way for the US dollar to thrive. BRICS member India has once again rejected the prospects of a new currency and praised the US dollar for maintaining global stability. India’s Foreign Minister S. Jaishankar spoke in favor of the US dollar sidelining the idea of launching a new currency on the global stage.
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India is the only country in the bloc that is moving away from the formation of a new common currency. BRICS members Russia, China, and Iran are aggressively pursuing the agenda to topple the US dollar from the world’s reserve currency status. The alliance is now divided as India is stepping aside and Brazil also revealed that they plan to drop the idea of a BRICS currency.
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Read here to know how many sectors in the US will be affected if BRICS ditches the dollar for trade.
India Wants the US Dollar & Not BRICS Currency
Speaking at a session titled ‘India’s Rise and Role in the World’ in London, Jaishankar confirmed that they’re not interested in BRICS currency. “I don’t think there’s any policy on our part to replace the US dollar. As I said, at the end of the day, the dollar as the reserve currency is the source of international economic stability. And right now, what we want in the world is more economic stability, not less,” he said.
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The statement from Jaishankar is at odds with what Russia, China, and Iran intend to streamline the alliance. India is on a different path and has openly embraced the US dollar rejecting the prospects of a BRICS currency. The move will make it tougher to launch a common currency as the decisions of the bloc are based.
The formation of a new BRICS currency could take longer than expected due to the ongoing divisions. In conclusion, the de-dollarization agenda might not take off in the coming years making the US dollar reign supreme for longer.