External Affairs Minister Dr. S. Jaishankar, during a recent discussion at Chatham House in London, addressed India’s stance on the U.S. dollar’s role in the global economy. He clarified that India has no policy aimed at replacing the U.S. dollar as the world’s primary reserve currency. Emphasizing the importance of economic stability, Jaishankar stated, “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.”

 

Addressing discussions within the BRICS nations about de-dollarization, Jaishankar noted that there isn’t a unified position on this matter among the member countries. He remarked, “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.”

 

Furthermore, Jaishankar highlighted India’s efforts to internationalize the rupee for trade settlements, aiming to enhance its global reach without undermining the U.S. dollar’s standing.

 

These comments come in the context of recent concerns raised by U.S. President-elect Donald Trump, who threatened to impose 100% tariffs on BRICS nations if they pursued the creation of a new currency to replace the dollar. Jaishankar responded by emphasizing that India has no interest in weakening the U.S. dollar and values its strong trade relationship with the United States.

 

In summary, India’s current policy does not seek to replace the U.S. dollar as the global reserve currency. The nation remains committed to economic stability and continues to explore ways to enhance the international role of the rupee in a manner that complements the existing global financial system.