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Reserve Bank of India (RBI) Governor Shaktikanta Das has announced that India is not pursuing a de-dollarization policy. He also emphasized that no concrete decisions have been made regarding the creation of a common BRICS currency.  As Forbes reported, India’s central bank head has confirmed that de-dollarization is not part of the country’s objectives under the BRICS group. Das’ remarks come in the wake of sharp criticism from former U.S. President Donald Trump, who threatened to impose a 100% tariff on BRICS nations if they attempt to replace the dollar in international trade. India’s approach to currency use During a press briefing, Das addressed questions on India’s stance, clarifying that the country has only sought local currency trade agreements to mitigate risks associated with reliance on a single currency.  “Dependence on one currency can be problematic at times because of appreciation or depreciation,” Das explained but stressed that India’s actions are aimed at diversification rather than outright de-dollarization. He noted that one of the group’s members introduced the concept of a BRICS currency, but no progress has been made.  “The geographical spread of the countries has also to be kept in mind, unlike the eurozone which has geographical contiguity,” he added.  India’s cautious stance on de-dollarization and the BRICS currency initiative raises questions about the bloc’s long-term unity and vision.  The country’s cooperation is especially pivotal to the BRICS framework, particularly for Russia and China, as it serves as a bridge between diverse geopolitical and economic interests.  India and Russia have formed strong ties in sectors like energy and defense, with $68 billion in bilateral commerce, mostly from cheaper imports of Russian petroleum. The potential for economic cooperation is evident in strategic initiatives like the Chennai-Vladivostok maritime corridor and the International North-South Transport Corridor. However, India’s pragmatic approach, balancing relationships…

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Filed under: News - @ December 6, 2024 5:28 pm