The BRICS bloc created a mock-up currency during the 16th summit in October in Russia’s Kazan region. Russian President Vladimir Putin proudly displayed the mock-up bill to all the attendees, indicating that a new currency is in the works. The currency in question would challenge the US dollar’s hegemony and dim its demand in the global supply mechanism. On the other hand, BRICS member India is slowly distancing itself from the de-dollarization agenda.

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The threat from BRICS was real and the Joe Biden administration stood by doing nothing. However, things are changing after Trump reclaimed the White House and the bloc is backtracking on the formation of a new currency. The recent threat from Trump to impose a 100% tariff on goods has ruffled feathers among developing countries. India made an official announcement regarding the BRICS currency and the de-dollarization initiative.

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India Makes Huge Announcement on BRICS Currency

India’s Foreign Minister S. Jaishankar confirmed that India is not interested in pursuing the de-dollarization agenda. He explained that India and the US have friendly ties, and Modi will maintain close relations with Trump. Jaishankar added that a BRICS currency is not in the works, and India will not stop depending on the US dollar.

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“There is a personal relationship between PM Modi and Trump. Where the BRICS remarks were concerned, we have said that India has never been for de-dollarization. Right now there is no proposal to have a BRICS currency. The BRICS do discuss financial transactions. The US is our largest trade partner, we have no interest in weakening the US dollar at all,” said Jaishankar.

“We had a good relationship, a very solid relationship with the first Trump administration. Yes, there were some issues mostly trade-related issues, but there were a whole lot of issues on which Trump was very international, and I remind people that it was actually under Trump that the QUAD was restarted,” he said.