BRICS Summit Rejects Common Currency in Favor of Local Trade

The 18th BRICS Summit in New Delhi concluded with the adoption of the New Delhi Declaration, which emphasizes the promotion of trade settlements in local currencies. While the declaration acknowledges these discussions, the Government of India clarified that there is currently no proposal for a common BRICS currency.

Sudhakar Dalela of the Ministry of External Affairs described local currency settlements as a practical mechanism to reduce transaction costs in bilateral trade. He noted that these measures are intended to complement existing global systems rather than replace them entirely.

Economist Jeffrey Sachs supported the move toward alternatives to the U.S. dollar, arguing that the United States has "weaponised" the currency to enforce foreign policy. Sachs cited the threat of removal from the SWIFT payment system as a primary example of U.S. unilateralism. He maintained that the BRICS grouping is not an alliance against the United States, but a movement toward a multipolar global order.