(Bloomberg) -- There has been no decision by the so-called BRICS block about creating a common currency to reduce usage of the dollar, India’s central bank chief said.
“BRICS currency was an idea raised by one of the members and was discussed but no decision has been taken,” Reserve Bank of India Governor Shaktikanta Das said in a post-policy briefing on Friday. “The geographical spread of the countries has also to be kept in mind, unlike the euro zone which has geographical contiguity.”
The comments come after US President-elect Donald Trump recently warned BRICS nations that he would require commitments that they would not move to create a new currency as an alternative to the dollar and reiterated threats to levy a 100% tariff.
India has been attempting to encourage the use of the rupee in cross-border payments as it seeks to reduce reliance on the dollar. The move is part of Prime Minister Narendra Modi’s efforts to boost India’s presence on the global stage and position the country as a manufacturing alternative to China in the post-Covid era.
“There is no step we have taken to de-dollarize,” Das said. “We want to derisk Indian trade as dependence on one currency can be problematic at times because of appreciation or depreciation.”
The BRICS group of emerging-market nations — the acronym stands for Brazil, Russia, India, China and South Africa — expanded this year to include Iran, the United Arab Emirates, Ethiopia and Egypt. It discussed the issue of de-dollarization at a summit in 2023.
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