Foreign Secretary Vinay Mohan Kwatra has addressed the possibility of BRICS countries adopting a common currency, clarifying that the group’s discussions have primarily focused on enhancing trade in national currencies rather than developing a common currency.
In a special media briefing, Kwatra stated, “The substantive part of trade and economic exchanges and discussions that have been a part of BRICS discussions, have so far, in a major way, focused on how to increase trade in respective national currencies which… is considerably different from a common currency concept.”
He further elaborated that the discussions related to a common currency require multiple prerequisites and that the current BRICS discussions and their substance have been centered on facilitating trade using individual national currencies.
Prominent voices within BRICS, such as former Brazil President Lula da Silva and Russian Foreign Minister Sergey Lavrov, have expressed support for the idea of a common currency among the member nations. This concept has been touted as a potential challenger to the dominance of the US dollar in international trade.
President Lula da Silva, in a speech in April, stated, “I am in favor of creating, within the BRICS, a trading currency between our countries, just like the Europeans created the euro.”
Likewise, Russian Foreign Minister Sergey Lavrov emphasized the need for self-respecting countries to establish their own mechanisms to ensure sustainable development and protection from external influences. He spoke about the potential creation of a currency within the framework of BRICS.
However, India has maintained a cautious stance on this matter. External Affairs Minister S Jaishankar clarified that there have been no discussions within BRICS about adopting a common currency. Vinay Mohan Kwatra’s recent comments further affirm that the primary focus of BRICS discussions is on deepening trade relationships and transactions conducted in national currencies.
Kwatra’s statement highlights that the current discussions within BRICS are centered on practical steps to boost trade and economic collaboration among member countries. While the idea of a common currency may have found support from some quarters, the group’s emphasis remains on enhancing trade using the existing national currencies of the member nations.
