Brics Shies Away From De-Dollarisation Despite Calls for Change
Despite calls from some members to de-dollarise, the Brics group has been coy about challenging the US dollar's dominance. The joint statement after a meeting of finance ministers and central bank governors in Mumbai does not mention a common Brics currency or a formal call for replacing the US dollar.
The statement instead focuses on interoperable payment systems, local-currency settlement, and voluntary cooperation among members. It encourages the Brics Payment and Settlement Systems (BPTF) to continue exploring 'pragmatic solutions' for efficient cross-border payment mechanisms.
Iran's President Masoud Pezeshkian made a direct case for moving away from the US dollar, citing the international financial system's concentration on a limited number of currencies as leaving economies vulnerable to political shocks. He argued that expanding the use of national currencies and establishing necessary instruments for managing currency risks could reduce exposure to financial restrictions imposed through the dollar-based system.
Russian President Vladimir Putin also emphasized the need for Brics countries to build a 'new, sustainable platform for global growth' by reducing reliance on Western systems. India's Commerce and Industry Minister Piyush Goyal called for linking payment systems and increasing trade in local currencies.