No Proposal For Common BRICS Currency, Says Govt
BRICS countries are not considering any proposal to introduce a common currency, the government said on Saturday, amid growing speculation over efforts by the grouping to reduce dependence on the US dollar.
“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 at a media briefing after the first day of the two-day BRICS Summit in New Delhi.
Instead, BRICS members are focusing on promoting trade settlements in local currencies and strengthening cross-border payment systems to reduce transaction costs.
“Discussion on trade settlement in local currency has been underway for some time in BRICS; it’s not a new subject,” Dalela said.
He said local currency settlement was being encouraged as a practical mechanism for bilateral trade while remaining complementary to the existing global payment and settlement system.
“We believe local currency settlement is a practical mechanism to reduce transaction cost in bilateral trade,” Dalela said.
The clarification comes against the backdrop of repeated speculation about a possible common BRICS currency as member countries seek to reduce their reliance on the US dollar for trade and financial transactions.
Commerce and Industry Minister Piyush Goyal had on Friday called for greater integration of payment systems among BRICS countries and increased use of local currencies for trade.
Addressing the BRICS Business Forum 2026 on the sidelines of the summit, Goyal highlighted India’s Unified Payments Interface (UPI) as an example of digital payment infrastructure that could support greater cross-border integration.
“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,” he said.
The New Delhi Declaration adopted by BRICS leaders on Saturday also recognised ongoing discussions on promoting trade settlements and investments in member countries’ local currencies. It noted that such efforts would take into account national priorities, with no single approach applicable to all members.
The issue has also drawn attention in the US, with President Donald Trump previously warning BRICS nations against creating a common currency or supporting an alternative to the dollar. He had threatened 100% tariffs on countries pursuing such a move.
BRICS originally comprised Brazil, Russia, India, China and South Africa. The grouping expanded in 2024 with the inclusion of Egypt, Ethiopia, Iran, the UAE and Saudi Arabia, while Indonesia joined in 2025.
The bloc now comprises 11 major emerging economies and accounts for nearly half of the global population, around 40%
