India officially supports the plan for the BRICS alliance to create a united payment system to ditch the US dollar. The idea was first proposed by Iran earlier this month, with the idea being to unite all of the BRICS members’ native currencies into one, thus overpowering USD.
Ash Narain Roy, Director of India’s Institute of Social Sciences, discussed India’s stance on an independent BRICS payment system in an interview with the Russian publication TASS. Roy said that India supports the concept, but a group consensus approval will be required. “In principle, India favors an independent BRICS payments system,” Roy was quoted.
Iran is one of multiple BRICS countries looking to navigate around US sanctions. It was the first to consider the united payment system idea. The nation believes that linking all of the bloc’s currency systems could achieve this feat. The spokesperson for the Ministry of Foreign Affairs of the Islamic Republic of Iran Nasser Kanani issued the proposal this month. Kanani states that the conditions have been created for this to happen, as payments between these countries are migrating to national currencies.
India isn’t as vocal as other BRICS members on the topic of de-dollarization. However, the country does support the proposal that would endanger the greenback. Furthermore, as one of the five founders, India has a strong say in decisions, more than BRICS+ members. Roy added in the interview:
“There is a feeling that this issue needs to be discussed systematically by different stakeholders before a decision is taken. My understanding is that not just India, several members feel that such a far-reaching decision can’t be taken hurriedly. BRICS countries don’t want to create a system which may become dysfunctional. Hence the issue will be debated but a final decision is not expected in the near future.”
If the united BRICS payment proposal goes through, it is certainly possible that the BRICS currency could be worth more than the greenback. This even would be difficult though, as the greenback has been the most powerful payment system in the world. Especially facing sanctions, the BRICS bloc hopes its new financial system will aid in traversing around those.
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