BRICS countries divided into two parts amid trade war with America, conflict over new currency, India adopts different stance

New Delhi. The member countries of BRICS, an organization led by Brazil, Russia, India, China and South Africa, are divided on the issue of adopting their own currency instead of the dollar. Since the summit of BRICS countries in October last year in Kazan city of Russia, there has been a discussion that BRICS countries can adopt their new currency instead of the dollar, but after Donald Trump became the President of America in January this year, while the trade war has broken out all over the world, now the BRICS countries are divided among themselves on the new currency. India has not shown any interest in such a campaign and has distanced itself.

According to Foreign Minister S Jaishankar, India has no interest in weakening the US dollar. He has said this when the member countries of the BRICS group of emerging economies have failed to take a joint decision on any kind of alternative payment system against the dollar. Recently, during his six-day visit to Britain and Ireland, Jaishankar has clearly described the dollar as a source of international economic stability at the London-based think tank Chatham House.

Strengthening of relations between New Delhi and Washington
Jaishankar’s comment has come amid Trump’s tariff war. Apart from this, Trump has been repeatedly warning that if the BRICS countries try to reduce the dominance of the dollar, then strict steps will be taken. The Trump administration has imposed heavy taxes on China. On the other hand, Ukraine is constantly negotiating with Russia on the issue of war and is trying to improve relations. India is also strengthening its relations with America and is trying to avoid reciprocal tariffs. Jaishankar has praised the growing trade and diplomatic relations between New Delhi and Washington. However, he has also expressed hope for improvement in relations with China.

China has been struggling since 2008
On the other hand, China has been promoting Yuan as an alternative to the dollar since the global financial crisis of 2008 and has signed currency exchange agreements with its trading partners. China is also trying to get the BRICS countries to adopt another currency instead of the dollar. President Lula da Silva of Brazil, another BRICS member country, has also been talking about an alternative currency to replace the US dollar for a long time. Russia has also been talking about a new currency exchange system to replace the dollar since the heavy economic sanctions imposed after the Ukraine war.