Reserve Bank Governor Shaktikanta Das has said that India has no plans to ‘de-dollarise’ its trade and is only exploring alternative methods to reduce risks.
He was answering a question on US President-elect Donald Trump’s warning that BRICS nations will be hit with 100% tariffs if they decide to abandon the US dollar.
“As far as India is concerned, we have not taken any steps that specifically aim to de-dollarise,” Das told reporters.
He said that one of the members of the grouping—which consists of Brazil, Russia, India, China and South Africa—has proposed the proposal of a BRICS currency, but that there has not been any more development on it beyond initial conversations.
He noted that the BRICS nations are dispersed around the world and that proximity has contributed to the European Union’s success in adopting a common currency.
Permitting vostro accounts and signing agreements with two nations to settle trade transactions in local currency are the extent of India’s efforts, Das added.
“That is basically to derisk our trade. Dependence on one currency can be problematic at times because of appreciation or depreciation. De-dollarisation is certainly not our objective, it is not on the table at all,” he said.
