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Business News›News›India›BRICS chief backs de-dollarisation, says local currencies are the way forward

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BRICS chief backs de-dollarisation, says local currencies are the way forward
Synopsis

BRICS Chamber Chairman Sameep Shastri supports de-dollarisation for a multipolar economic system. He believes local currency trade and digital transactions offer developing nations a greater voice. Businesses face multiple costs when conducting international trade through the US dollar. India aims to strengthen exports to BRICS economies while managing energy import deficits. The nation is also pursuing trade agreements and increasing bilateral trade with Russia.

ANI

New Delhi: Chairman of BRICS Chamber of Commerce and Industry Sameep Shastri on Wednesday backed the push for de-dollarisation, saying that the shift towards local currencies and digital transactions was necessary for a multipolar economic system where developing nations have a greater voice.



On the de-dollarisation debate, Shastri said the process had already begun and argued that businesses face multiple costs while conducting international trade through the US dollar.



Also Read: BRICS Summit in New Delhi: The grand finale is India's moment to navigate a bigger, and more divided bloc

He said developing countries could benefit from adopting local currency-based trade and digital platforms, adding that such systems could support a more balanced global economic framework.



Speaking to ANI, he said, "De-dollarisation started when America invested in crypto; they de-dollarized themselves rather than blaming it on other countries. And why should a businessman, it's a very practical question, pay a royalty just to buy in dollars, then the transaction change fees and then, so, literally three times the penalty is being paid just to trade because he has to do it in dollars. Is the way forward for having a multipolar economic situation where developing nations have a voice, and I don't see that going back. I don't see any other solution other than dealing with local currency and with digital transactions taking place, and UPI playing one of the most, what I'll call, ideal roles for most of the developing countries. UPI is playing that role, and we are showing the world that we can have $90 billion of transactions, and we are leading in digital transactions; I feel it should not be a bad thing."




He also said that India needs to strengthen exports to BRICS economies, as high energy imports have left the country running a trade deficit with most members of the grouping.

"Currently, India is in a trade deficit with most of the BRICS nations because we are primarily importing energy sources. With our consumption very high and a population of 1.4 billion, we need to make sure that every household has LPG and every car is running on petrol," Shastri told ANI.

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BRICSlocal currenciesdigital transactionsSameep ShastriUPIIndia trade deficitbilateral tradeBRICS Chamber of Commerce and IndustryEurasian Economic Union

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