Jaishankar Speaks On De- Dollarisation, BRICS Currency, and Internationalisation Of Rupees At Chatham House

Jaishankar Speaks On De- Dollarisation, BRICS Currency, and Internationalisation Of Rupees At Chatham House, London (Image:X)

London: External Affairs Minister Dr S Jaishankar, who is currently on a UK tour, spoke on several issues including de-dollarisation, the position of BRICS countries on Dollar and the internationalisation of Rupee. This comes amid US President Donald Trump‘s threat to impose over 100-150 % tariff on BRICS nations trying to undermine the US Dollar.

Speaking at a session titled ‘India’s Rise and Role in the World’ at London’s Chatham House, Jaishankar said that India as no plans to replace Dollar as the international reserve currency. He asserted that India is pushing for more economic stability around the world. “I don’t think there’s any policy on our part to replace the dollar. As I said, at the end of the day, the dollar as the reserve currency is the source of international economic stability. And right now, what we want in the world is more economic stability, not less,” the Indian External Affairs Minister said.

Jaishankar On BRICS’ Stand On De-Dollarisation

On the issue of BRICS launching alternate currency, Jaishankar clarified that the member countries donot have a unified position on the issue. “I would also say in all honesty, I don’t think there’s a unified BRICS position on this. I think BRICS members and now that we have more members have very diverse positions on this matter. So the suggestion or the assumption that somewhere there is a united BRICS position against the dollar I think is not borne out by facts. To me it’s kind of deterministic that there is multi-polarity, multi-polarity has to translate itself into a currency multi-polarity. It doesn’t have to,” Jaishankar said.

BRICS, formed in 2009, is the only major international group of which the United States is not a part. BRICS consists of ten countries- Brazil, Russia, India, China, South Africa, Egypt, Ethiopia, Indonesia, Iran and the United Arab Emirates.

Jaishankar on Internationalisation Of Indian Rupee

However, he clarified that India is promoting the internationalisation of its currency, especially where there is a shortage of Dollar. “We are clearly promoting the internationalization of the rupee because we are actively globalizing India. More Indians are travelling and living abroad, and India’s trade and investment sectors have expanded. As a result, the use of the rupee will also grow. In many cases, we have established mechanisms for cashless payments between India and other countries and have supported trade settlements, particularly in nations facing a shortage of hard currency, especially dollars,” EAM Jaishankar said.

“This reflects a steady externalization of rupee transactions as part of India’s globalization. Regarding the role of the dollar, we are realistic. 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…” he added.

Trump’s Repeated Threats Over De-Dollarisation

Donald Trump, since taking office, had warned BRICS nations of sweeping tariffs if they launched a new currency. Trump said that the US requires a commitment from the BRICS nations that they will “neither create a new currency nor back any other currency to replace the mighty US dollar.”

“There is no chance that BRICS will replace the US Dollar in International Trade, or anywhere else, and any Country that tries should say hello to Tariffs, and goodbye to America!” the US President posted on Truth Social. He said that he will impose a 150% tariff on countries trying to undermine Dollar.

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