The US dollar will continue to exist in the global trade, said the official
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SUKREE SUKPLANG
BRICS nations will work on increasing their understanding of the importance of having an alternative mechanism to do trade in national currencies to protect against geopolitical vulnerabilities, but the process is not the same as de-dollarisation, a senior MEA official has said
“The dollar (US) will continue to exist in the global trade. It’s the most dominant currency. I don’t think there’s a competition there. It’s just that countries will look for alternatives and we have to appreciate their effort in the direction,” Dammu Ravi, MEA Secretary (ER), said.
Prime Minister Narendra Modi will attend the BRICS Summit in Rio de Janeiro, Brazil, on July 6 and 7 which will focus on global governance and artificial intelligence, a framework declaration on climate finance and a partnership for the elimination of socially determined diseases. India will be the grouping’s chair for the next year.
US President Donald Trump had accused BRICS countries of promoting de-dollarisation and threatened them with tariffs in case they came up with a common currency. While there is an understanding amongst most BRICS nations that the idea of a BRICS common currency was not feasible at the moment, many members are already engaging in trading in national currencies and want to adopt it for intra-BRICS trade,
“What is important for us to note is that many countries are already doing it. Whether in the BRICS context or bilateral context, countries are doing it. And why this is happening, and we have to understand that in the geopolitical context, there is an economic angle. Countries of the Global South become more vulnerable when there are problems elsewhere in the world as well. So which is why the alternative formats and the methods that countries in the Global South want to use is very natural,” Ravi explained.
Responding to a question on Chinese President Xi Jinping and Russian President Vladimir Putin missing the summit, Ravi said it will be a key forum for India to continue to push for the interests of the Global South and engage with other members.
PM Modi’s participation in the summit will be an expression of India’s solidarity with the bloc and it will be a great opportunity for him to connect with the leaders of the Global South, he said.
Published on June 30, 2025