New Delhi: Foreign Minister Vinay Mohan Kwatra has downplayed the possibility of the BRICS countries developing a common currency. In a special briefing with the media, Kwatra explained that BRICS deliberations had focused on boosting trade in national currencies rather than developing a common currency.

“The essential part of the trade and economic exchanges and discussions that have been part of the BRICS discussions have so far mainly focused on how to increase trade in the respective national currencies, which … differs significantly from a common currency concept.” said Kwatra.

“You know that discussions about a common currency require several prerequisites before one can even talk about a framework for a common currency. “The discussion framework in BRICS and the content of this discussion framework in BRICS have mainly focused on trading within national currencies,” he added.

Prominent figures such as Brazilian President Lula da Silva and Russian Foreign Minister Sergei Lavrov have expressed their support for the idea of ​​a common BRICS currency. Some have cited the concept as a potential challenger to the US dollar.

“I am in favor of creating a trading currency between our countries within the BRICS, just as the Europeans created the euro,” President Lula said during a speech in April.

“Serious, self-respecting countries are well aware of what is at stake, they recognize the incompetence of the ‘masters’ of the current international monetary and financial system, and they want to create their own mechanisms to ensure sustainable development from which they will be protected. “It’s being dictated from outside,” Russian Foreign Minister Sergei Lavrov was quoted as saying by numerous news outlets in January this year. He then spoke about the creation of a currency within the framework of the BRICS countries.

However, India has been reluctant to go public on the matter. Foreign Minister S. Jaishankar stated that there was no discussion about a common BRICS currency. Kwatra’s comments seem to indicate that the group’s focus will remain on deepening trade in national currencies.