BRICS member India made a huge announcement about using the U.S. dollar for global trade and transactions. The major announcement comes when developing countries want to end reliance on the U.S. dollar for cross-border trade. Amid the de-dollarization frenzy, India confirmed that they will not actively target the U.S. dollar and it’s not a part of their national economic policy.
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Despite BRICS members cutting ties with the U.S. dollar, India revealed it will settle trade using the USD. India has no plans to aggressively push the de-dollarization agenda and will use the U.S. dollar for global trade and transactions.
BRICS: India Will Not Target the U.S. Dollar, Confirms Foreign Minister
India’s Foreign Minister S. Jaishankar confirmed that India will not actively target the U.S. dollar. However, the country will passively look for alternative currency options to settle trade with nations that don’t accept the USD, he said. Therefore, India will pay local currencies for BRICS members like Russia and China, among others, and not the U.S. dollar. With other nations, the USD will be the first mode of payment.
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“What I will tell you is a natural concern there. We often have trade partners who do not have dollars to take. So, we now have to look at whether we forgo dealings with them or do we find some settlement that works otherwise. So, there’s no, I can say malicious intent vis-a-vis the U.S. dollar in business. We are trying to do our business,” said Jaishankar. The Foreign Minister’s statement comes when India is gearing up to attend the BRICS summit.
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“We (India) have never actively targeted the U.S. dollar. That’s not part of either our economic policy or our political or strategic policy. Some others may have,” revealed the Foreign Minister. The 16th BRICS summit is scheduled to take place in the Kazan region of Russia on October 22 to 24.