Currency conundrum: on the BRICS New Delhi Declaration

Source: The Hindu | Original Published At: 2026-09-16 18:50:00 UTC

Key Points

• The BRICS New Delhi Declaration acknowledges efforts on local-currency trade but does not present concrete proposals.
• India's rupee trade with BRICS partners has remained limited, with the United Arab Emirates and Russia among the few engaged in it.
• The declaration promotes BRICS local-currency trade while respecting national priorities and noting that there is no one-size-fits-all approach.
• India faces a strategic choice between receiving export payments in dollars and paying for imports in relatively cheaper local currencies.
• China accounts for about two-thirds of BRICS exports, making BRICS local-currency trade largely yuan-denominated, which India views cautiously.
• India has opposed a common BRICS currency due to concerns about Chinese dominance and potential U.S. tariff threats.
• Iran and Russia have stronger incentives than India to reduce dependence on the dollar, a divergence reflected in the declaration.