BRICS member India is studying the prospects and usage of a new BRICS currency against the US dollar. Reports state that India has ordered a group of financial analysts to study the possibility of a new BRICS currency. The order indicates leading financial intellectuals and think tanks to debate the formation of a new currency, which could be an alternative to the US dollar.
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A senior and top-level government official from India said on the condition of anonymity that the study on BRICS currency could be a talking point at the next summit in October 2024. The 16th summit is scheduled to be held in the Kazan region of Russia.
BRICS: India Begins Study For a New Currency, An Alternate To the US Dollar
The official said that there’s no harm in studying the prospects of a new BRICS currency. If the study goes well, India could be the first country to showcase the pros and cons of a new currency against the US dollar. “We have not changed our position at all, but there is no harm in a study,” said the source to Business Standard.
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Therefore, the future of the BRICS currency now lies in the hands of Indian officials who are studying the proposal. If the think tanks conclude that a new currency helps the alliance, then the US dollar will remain in danger. However, if the analysts conclude that an alternative currency helps no one, the US dollar could reign supreme.
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Indian officials are yet to provide details about the study as the orders remain classified. The upcoming summit in October could be the decider and seal the fate of the US dollar. Read here to know how many sectors in the US will be affected if BRICS ditches the dollar for trade.
