Amid U.S. President Donald Trump’s warnings, India’s External Affairs Minister S. Jaishankar has downplayed discussions on dedollarisation and instead emphasized the global expansion of the Indian rupee.
During a discussion at Chatham House, a think tank in the United Kingdom, Jaishankar clarified that India does not have a formal policy to move away from the U.S. dollar, nor is there a unanimous stance on this matter within the BRICS alliance.
“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,” said Jaishankar.
In a post on social media platform X, formerly known as Twitter, Jaishankar shared insights from his discussion at Chatham House, reaffirming India’s stance on the issue.
In recent months, Trump has repeatedly warned of imposing 100 percent tariffs on BRICS nations if they proceed with efforts to replace the U.S. dollar as the dominant currency for global trade.
No Unified BRICS Position on Dedollarisation
Jaishankar asserted that BRICS countries do not hold a single, unified stance regarding an alternative to the U.S. dollar.
“As far as India is concerned, instead of replacing the dollar, India is interested in the internationalisation of the Indian rupee,” said Jaishankar.
He further elaborated, “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.”
Highlighting India’s approach, Jaishankar emphasized that New Delhi is focused on expanding the rupee’s global presence rather than challenging the dollar’s dominance.
“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…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 U.S. are at their best. We have no interest in undermining the dollar,” Jaishankar stated.
Trump’s Threats Against BRICS
In recent months, Trump has intensified his criticism of BRICS and has repeatedly threatened member nations with 100 percent tariffs.
Echoing his earlier stance on the European Union, Trump has characterized BRICS as an alliance designed to harm the United States.
“I don’t care, but BRICS was put there for a bad purpose, and most of those people don’t want it. They don’t even want to talk about it now. They’re afraid to talk about it because I told them if they want to play games with the dollar, then they’re going to be hit with a 100 percent tariff,” Trump stated.