India Advocates for Rupee Globalisation Amidst Dollar Supremacy

India’s External Affairs Minister, S. Jaishankar, clarified that BRICS does not have a unified stance on de-dollarisation, asserting India’s focus on promoting the rupee globally without aiming to challenge the US dollar’s dominance. He emphasized India’s cooperative relations with the US to enhance economic stability, aligning with the need for a multipolar world.

In a recent statement, India’s External Affairs Minister, S. Jaishankar, clarified that the BRICS nations do not possess a unified stance on de-dollarisation. He remarked, “I would also say in all honesty, I don’t think there’s a unified BRICS position on this.” The reality reflects diverse views among BRICS members on the issue of an alternative currency to the US dollar.

BRICS, comprising ten nations—Brazil, Russia, India, China, South Africa, Egypt, Ethiopia, Indonesia, Iran, and the United Arab Emirates—was established in 2009 and does not include the United States, which has led to various speculations regarding its financial strategies.

Jaishankar emphasized India’s commitment to promoting the global use of the rupee, stating, “We are clearly promoting the internationalisation of the rupee because we are actively globalising India.” He noted that the increase in international travel and trade among Indians necessitates a growing role for the rupee in global markets.

India has initiated mechanisms for rupee-based transactions with select countries, particularly those with limited access to hard currency. Jaishankar mentioned India’s support for cashless payments and trade settlements in these nations while affirming, “We have no issue with the dollar, and our relations with the US are at their best. We have no interest in undermining the dollar.”

Jaishankar’s remarks come amid US President Donald Trump’s warning against efforts to supplant the dollar. Trump indicated that any movement towards a BRICS currency would face severe repercussions, stating, “There is no chance that BRICS will replace the US dollar in international trade…”

Reflecting on US foreign policy under Trump, Jaishankar expressed that the shift was anticipated, considering the administration’s articulated agenda. He suggested that the evolving multipolar landscape aligns with India’s strategic interests, noting, “I see a lot of promise. Conceptually, I believe we are seeing a president and administration that, in our parlance, are moving toward multipolarity.”

Acknowledging India’s enduring diplomatic ties with the US, he emphasized, “We have never had any issues with American presidents, at least in recent times. There’s no baggage…”. Jaishankar underscored that India prioritizes collaboration with the United States to enhance global economic stability, asserting that strong international economic cooperation is critical during these times.

In summary, S. Jaishankar’s statements articulate India’s strategic approach to international finance, underscoring its commitment to advancing the rupee’s global use without challenging the US dollar’s supremacy. Furthermore, his observations highlight the diverse perspectives within BRICS concerning de-dollarisation, reinforcing India’s intention to foster strong economic ties with the United States amidst an evolving multipolar world.

Original Source: m.economictimes.com