BRICS currency trade initiatives serve as protection against geopolitical vulnerabilities, not global de-dollarisation, according to a senior MEA official. The clarification addresses de-dollarization concerns while emphasizing that India foreign exchange policy supports national currency trade as an alternative mechanism rather than dollar replacement.
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BRICS Currency Trade Goals, India’s Forex Policy, And Dollar Impact
MEA Official Clarifies BRICS Currency Trade Position
Dammu Ravi, MEA Secretary (ER), has directly addressed misconceptions about BRICS currency trade objectives and also made it clear that there’s no competition with the US dollar right now.
Ravi stated:
“The dollar (US) will continue to exist in the global trade. It’s the most dominant currency. I don’t think there’s a competition there. It’s just that countries will look for alternatives and we have to appreciate their effort in the direction.”
The official emphasized that BRICS nations are working on increasing understanding of alternative mechanisms for national currency trade, positioning this as vulnerability protection rather than dollar competition.
Current National Currency Trade Practices
Many countries are already implementing national currency trade arrangements both within BRICS context and also bilateral agreements. This trend reflects practical economic considerations as Global South nations seek protection from external geopolitical shocks.
Ravi explained:
“What is important for us to note is that many countries are already doing it. Whether in the BRICS context or bilateral context, countries are doing it. And why this is happening, and we have to understand that in the geopolitical context, there is an economic angle. Countries of the Global South become more vulnerable when there are problems elsewhere in the world as well. So which is why the alternative formats and the methods that countries in the Global South want to use is very natural.”
India’s BRICS Leadership And Summit Focus
Prime Minister Modi’s participation in the BRICS Summit on July 6-7 in Rio de Janeiro demonstrates India’s commitment to BRICS currency trade cooperation. India will chair the grouping for the next year, focusing on global governance, artificial intelligence, and also climate finance frameworks.
The summit addresses de-dollarization concerns by clarifying that India foreign exchange policy supports practical alternatives rather than system disruption. Modi’s participation expresses India’s solidarity with the bloc while maintaining constructive global financial relationships right now.
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The MEA’s clarification distinguishes between seeking practical national currency trade solutions and actively challenging existing financial structures, positioning India as a responsible global player focused on stability rather than disruption.