BRICS member India has confirmed it will not target the US dollar amid the de-dollarization agenda that has swept the global financial landscape.
India made it clear that it has no plans to end its reliance on the US dollar and will use the currency for trade and transactions, where it remains a necessary form of payment, the Telegraph reports.
The development is a complete U-turn from the BRICS initiative where the alliance is pushing de-dollarization narratives around the world.
Sources say India is unhappy with the narrative pushed by its BRICS counterparts, China and Russia.
According to sources, India believes that China is using BRICS as a stepping stone to strengthen its dominance around the world.
India's Foreign Minister S. Jaishankar confirmed that the country is not interested in the dedollarization agenda.
Jaishankar explained that India will use the US dollar wherever it is accepted as a form of payment.
In the absence of accepting the US dollar, the country will rely on local currencies, he said.
The statement comes at the end of the BRICS summit, where de-dollarization will be a major talking point.
"We have never actively targeted the US dollar. This is not part of our economic, political or strategic policy. Some others (BRICS members) may have done this (dedollarization). What I will say is that we have a natural concern. We often have trading partners who lack dollars for transactions," he said.
The Foreign Minister also made it clear that "there is no malicious intent towards the US dollar".
In conclusion, BRICS member India is pulling out of the de-dollarization process as the move will hurt its economy.
India needs the US dollar and accepting local currencies will only help China advance its global agenda. /Telegraph/