In a new twist of events, BRICS member India has confirmed that it will not target the US dollar amid the de-dollarization agenda that has engulfed the global financial landscape. India made it clear that it has no plans to end reliance on the US dollar and will use the currency for trade and transactions where it remains a necessary form of payment.
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The development is a complete U-turn from the BRICS initiative where the alliance is pushing de-dollarization narratives around the world. Sources say that India is unhappy with the narrative pushed by its BRICS counterparts China and Russia. According to sources, India believes China is using BRICS as a stepping stone to strengthen its dominance around the world.
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BRICS: India Rejects De-Dollarization, Will Use the US Dollar For Trade
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The Foreign Minister of India, S. Jaishankar confirmed that the country is not interested in the de-dollarization agenda. Jaishankar explained that India will use the US dollar wherever it is accepted as a form of payment. In the absence of accepting the USD, the country will rely on local currencies, he said. The statement comes on the heels of the BRICS summit where de-dollarization will be a major talking point.
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“We have never actively targeted the US dollar. That’s not part of our economic, political, or strategic policy. Some others (BRICS members) may have done so (de-dollarization). What I will say is that we have a natural concern. We often have trade partners who lack dollars for transactions,” he said. The Foreign Minister also made it clear that “there’s no malicious intent towards the US dollar.”
In conclusion, BRICS member India is backing out from the de-dollarization process as the move will hurt its economy. India needs the US dollar and accepting local currencies will only help China advance its global agenda.
