BRICS Summit to Discuss Dollar Ditching Plans Amid US Concerns
The BRICS summit in New Delhi on September 12 and 13 is set to discuss reducing dependence on the US dollar, a move closely watched by the United States. India's Commerce and Industry Minister Piyush Goyal has said that India is not in favour of a separate BRICS currency and does not support the introduction of any such scheme.
However, India has been working on mechanisms to reduce the need for dollar-based intermediaries in cross-border transactions, including linking official digital currencies with BRICS countries. This could potentially reduce reliance on the dollar, but RBI Governor Sanjay Malhotra has clarified that efforts to internationalise the rupee are not aimed at promoting de-dollarisation.
China's approach is more directly connected to increasing the global role of the yuan, with Beijing seeking to expand its use in global trade and investment. China has been developing financial infrastructure and arrangements to allow more transactions to take place in Yuan, including waiving certain fees for foreign issuers of panda bonds.
Russia has already shifted much of its BRICS trade towards national currencies, with around 90% of transactions conducted in local currencies. Kremlin spokesperson Dmitry Peskov said that Russia does not formally advocate 'de-dollarisation' and remains open to every acceptable method of payment.