No common BRICS currency for now, but local-currency trade gets push
The government has said that BRICS countries are not currently considering a proposal for a common currency. It also said discussions on settling bilateral trade in local currencies would continue as a practical way to reduce transaction costs.
"There is no proposal in the BRICS for a BRICS currency, as of now," Sudhakar Dalela, Secretary (Economic Relations) in the Ministry of External Affairs, said on Saturday while briefing the media after Day 1 of the two-day BRICS Summit being held in New Delhi under India's chairship.
The comments come as the multilateral bloc continues discussions on strengthening cross-border payments and reducing transaction costs in trade among member nations.
"Discussion on trade settlement in local currency has been underway for some time in BRICS; it's not a new subject," Dalela said, as quoted by news agency ANI.
Dalela said local currency settlement was being viewed as a practical mechanism to reduce transaction costs in bilateral trade.
"We believe local currency settlement is a practical mechanism to reduce transaction cost in bilateral trade. This has been encouraged as complementary to global payment and settlement system, improving overall global trade across nations," he stated.
The remarks assume significance in light of growing speculation in recent years over the possible introduction of a common BRICS currency to reduce reliance on the US dollar for trade and financial transactions — a process known as de-dollarisation.
Union Minister of Commerce and Industry Piyush Goyal's call for BRICS countries on Friday, September 11, to interlink their payment systems and promote trade in local currencies also made no reference to any proposal for a shared BRICS currency.
Addressing the Opening Session of BRICS Business Forum 2026, held on the sidelines of the 18th BRICS Summit, he said India has taken significant initiatives in laying out a digital public infrastructure, highlighting the Unified Payments Interface (UPI).
"Today, it (UPI) is also accepted in 11 countries and I would urge the BRICS member countries and partner countries to link our payment systems, trade in each other's local currencies, make digital trade global and build together for the future emerging technologies," the minister had said.BRICS ON TRADE SETTLEMENTS
The New Delhi Declaration, adopted by the BRICS grouping on Saturday, also acknowledged ongoing discussions on promoting trade settlements and investments using BRICS local currencies, while respecting national priorities and acknowledging that there is no 'one-size-fits-all' approach.DE-DOLLARISATION: THREAT FOR US
Speculations of de-dollarisation have been a natural cause of concern for Washington. Prior to assuming his current term in office as the President of the United States, Donald Trump had warned BRICS nations against creating a common currency or backing an alternative to the US dollar.
"We require a commitment from these countries that they will neither create a new BRICS Currency, nor back any other Currency to replace the mighty U.S. Dollar or, they will face 100% Tariffs, and should expect to say goodbye to selling into the wonderful U.S. Economy," the then President-elect had said in a Truth Social post in November 2024.BRICS: A RISING ECONOMIC FORCE
BRICS, originally comprising Brazil, Russia, India, China and South Africa, expanded in 2024 to include Egypt, Ethiopia, Iran, the United Arab Emirates (UAE) and Saudi Arabia, with Indonesia joining in 2025.
Belarus, Bolivia, Kazakhstan, Cuba, Malaysia, Nigeria, Thailand, Uganda, Uzbekistan and Vietnam became BRICS partner countries last year.
BRICS has come to become an influential alliance as it brings together 11 major emerging economies of the world, representing around 49.5% of the global population, around 40% of the global GDP and around 26% of the global trade.- Ends(With inputs from agencies)Published By: mayukh Published On: Sep 13, 2026 11:04 IST
