India Promotes Rupee’s Global Role While Upholding Dollar Relations

India’s External Affairs Minister S. Jaishankar promotes the rupee’s global use without plans to replace the US dollar. He states that BRICS nations lack a unified stance on de-dollarisation. India continues its collaboration with the US to enhance global economic stability, reaffirming strong ties while seeking to globalize the rupee in the international economy.

India is advocating for the international prominence of the rupee while clarifying that it does not seek to replace the US dollar, as articulated by External Affairs Minister S. Jaishankar. He emphasized the diversity of positions held by BRICS nations regarding de-dollarisation, stating, “I think BRICS members… have very diverse positions on this matter.” This highlights a lack of unified opposition to the dollar among BRICS countries.

Established in 2009, BRICS consists of ten nations: Brazil, Russia, India, China, South Africa, Egypt, Ethiopia, Indonesia, Iran, and the United Arab Emirates. Its unique position, excluding the United States, has led to speculations about its intentions in the sphere of global finance.

Jaishankar reaffirmed India’s commitment to promoting the rupee, noting the country’s expanding international engagement. “We are clearly promoting the internationalisation of the rupee because we are actively globalising India,” he stated. He highlighted mechanisms already established for rupee-based transactions with various countries, particularly those with limited access to hard currency.

In supporting rupee transactions, Jaishankar clarified that India does not perceive the dollar as a hindrance in its economic relations. “We have no issue with the dollar, and our relations with the US are at their best,” he remarked, indicating India’s intent to maintain strong ties with the United States despite growing interest in the rupee.

These comments come amid warnings from former US President Donald Trump, who threatened severe tariffs against BRICS nations contemplating a new currency. Trump asserted, “There is no chance that BRICS will replace the US dollar… any country that tries should say hello to tariffs, and goodbye to America!”

Reflecting on the evolving US foreign policy, Jaishankar noted the expected nature of Trump’s agenda, stating, “…political leaders… do much of what they promised to do.” He characterized the current administration’s approach as fostering a multipolar world, which aligns with India’s strategic interests. Jaishankar asserted that India does not carry historical burdens in its diplomatic relations with the US, leading to a cooperative environment.

Jaishankar emphasized the importance of collaboration with the US in ensuring global economic stability. He stated, “…working with the United States… is actually what should be the priority.” This perspective underscores India’s pragmatic approach towards the global financial system, seeking rupee internationalisation without challenging dollar dominance. Ultimately, India aims to enhance economic cooperation with the US, promoting a multipolar world order conducive to its enduring strategic objectives.

In conclusion, India’s External Affairs Minister S. Jaishankar articulated a commitment to enhancing the rupee’s global presence without pursuing a direct challenge to the US dollar. The distinction among BRICS nations regarding de-dollarisation reflects the complexities of international financial dynamics. India’s strategic partnership with the US remains a priority as it navigates these challenges while advocating for the internationalisation of its currency.

Original Source: m.economictimes.com