India's Stance on US Dollar Replacement for Global Trade
India's Chief Economic Adviser clarified that India is not pursuing any proposals to replace the US dollar for global trade. Although discussions about local currency use in BRICS were held, there is no current viable alternative. Central banks are diversifying foreign reserves, including gold, for balance.
- Country:
- India
In recent remarks, Chief Economic Adviser V Anantha Nageswaran stated that India is not exploring any alternatives to the US dollar as an international currency for global trade. Despite prior discussions at the BRICS Summit, India remains committed to utilizing the dollar for cross-border transactions.
The 16th BRICS Summit emphasized the advantages of efficient and inclusive payment systems, advocating the use of local currencies among its member countries for trade. However, Nageswaran highlighted the challenges in finding a viable alternative to the US dollar at present.
India's central banks are adopting a diversified approach to foreign exchange reserves, incorporating more gold in recent years to maintain stability. This strategic adjustment underscores the importance of balanced foreign reserve portfolios in the current global economy.
(With inputs from agencies.)
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