Prime Minister Narendra Modi on Sunday extended his best wishes to China as Beijing prepares to take over the BRICS chairship and host the grouping’s next summit in 2027. His message came as BRICS enters its third decade, with Modi stressing that the grouping must now deliver “concrete results” rather than remain limited to ideas and commitments.&nbsp;Addressing the open session on the second day of the BRICS Summit in New Delhi, Modi said the world would increasingly judge the grouping by the outcomes it delivers.&nbsp;“BRICS is poised to enter its third decade. The world now expects concrete results from us, not just ideas and commitments. I am confident that through our collective efforts, we will certainly live up to these expectations,” Modi said.&nbsp;He also commended the participating leaders and their teams for making the New Delhi Summit a success and wished China well as the next host.<h3>West Asia war puts supply chains and Hormuz on agenda</h3>China will take charge of an expanded BRICS bloc at a time when geopolitical conflicts are increasingly affecting trade, energy flows and maritime security.&nbsp;The New Delhi Declaration reflected these concerns, with BRICS leaders expressing deep concern over escalating violence in West Asia and calling for maximum restraint from all parties to prevent further widening of the conflict.&nbsp;The declaration also raised concerns over deliberate attacks on civilian infrastructure and peaceful nuclear facilities safeguarded by the International Atomic Energy Agency.&nbsp;For BRICS, the conflict has implications beyond West Asia. The declaration stressed the need to protect global supply chains, strengthen maritime security and ensure uninterrupted energy flows through strategic waterways such as the Strait of Hormuz.&nbsp;Disruptions along key shipping routes can affect energy prices, trade flows and the movement of goods across economies. The conflict has also increased concerns over the safety of seafarers operating around strategically important maritime routes.&nbsp;Also Read: <a href="https://www.wionews.com/india-news/pm-modi-calls-for-time-bound-action-on-new-delhi-declaration-extends-best-wishes-to-china-for-brics-chairship-1789294374341">PM Modi calls for time-bound action on New Delhi Declaration, extends best wishes to China for BRICS chairship</a>&nbsp;<h3>China takes charge of bloc dominated by its economic weight</h3>&nbsp;The China presidency is significant because Beijing has a dominant economic position within the expanded BRICS grouping.&nbsp;China accounts for more than half of the bloc’s nominal GDP. With a nominal GDP of around $19.6 trillion, its economy is several times larger than India’s, the second-largest BRICS economy. On a purchasing power parity basis, China also accounts for a substantial share of the grouping’s total output.&nbsp;This economic weight gives Beijing considerable influence, but it also places greater responsibility on China to balance the interests of members with different economic priorities and strategic positions.&nbsp;The Russia-Ukraine war and the West Asia conflict could prove particularly challenging. Russia remains directly involved in the Ukraine conflict, while Iran is at the centre of the West Asia crisis. The conflict has also affected other BRICS members, including Saudi Arabia and the UAE, through higher energy prices, trade disruptions and maritime security concerns.&nbsp;China will therefore have to maintain consensus within a bloc whose members have different positions on major geopolitical conflicts.<h3>Payments, local currencies gain momentum</h3>The financial agenda at the New Delhi Summit also offers China an opportunity to push practical economic cooperation.&nbsp;While the idea of reducing dependence on the US dollar and a possible common BRICS currency has attracted attention, the New Delhi Declaration did not endorse a common currency. Instead, members backed greater use of national currencies in trade and investment and efforts to improve the interoperability of payment systems.&nbsp;The BRICS Payment Task Force has been examining ways to make cross-border payments faster, cheaper, more accessible, transparent and secure. The declaration also noted work on interoperable payment and messaging channels.&nbsp;The approach could prove more achievable than creating a single BRICS currency. Greater use of national currencies and better-connected payment systems could reduce transaction costs and provide members with alternatives for cross-border trade.<h3>BRICS members carry common concerns into G20</h3>BRICS priorities are also likely to overlap with discussions at the G20, particularly on trade, global governance and the concerns of developing economies.&nbsp;Six of the 11 BRICS members are individual G20 members: Brazil, Russia, India, China, South Africa and Indonesia. This gives the bloc significant representation in the wider global economic forum.&nbsp;The weaponisation of trade, ongoing wars, supply-chain disruptions and greater representation for the Global South in institutions such as the United Nations, UN Security Council and World Trade Organization are likely to remain key issues.&nbsp;As China begins its BRICS presidency, Beijing will therefore face the challenge of converting the grouping’s growing economic and political weight into coordinated action.&nbsp;The New Delhi Summit has already identified several practical areas, including local-currency trade, cross-border payments, supply-chain resilience and maritime security.&nbsp;The expectation set by Modi is clear: BRICS must now move from commitments to “concrete results”.

As China takes over the BRICS chairship, the grouping faces the challenge of turning its growing economic weight into practical cooperation on conflicts, supply chains, maritime security and cross-border payments while expanding the use of local currencies.

Prime Minister Narendra Modi on Sunday extended his best wishes to China as Beijing prepares to take over the BRICS chairship and host the grouping’s next summit in 2027. His message came as BRICS enters its third decade, with Modi stressing that the grouping must now deliver “concrete results” rather than remain limited to ideas and commitments. Addressing the open session on the second day of the BRICS Summit in New Delhi, Modi said the world would increasingly judge the grouping by the outcomes it delivers. “BRICS is poised to enter its third decade. The world now expects concrete results from us, not just ideas and commitments. I am confident that through our collective efforts, we will certainly live up to these expectations,” Modi said. He also commended the participating leaders and their teams for making the New Delhi Summit a success and wished China well as the next host. West Asia war puts supply chains and Hormuz on agenda China will take charge of an expanded BRICS bloc at a time when geopolitical conflicts are increasingly affecting trade, energy flows and maritime security. The New Delhi Declaration reflected these concerns, with BRICS leaders expressing deep concern over escalating violence in West Asia and calling for maximum restraint from all parties to prevent further widening of the conflict. The declaration also raised concerns over deliberate attacks on civilian infrastructure and peaceful nuclear facilities safeguarded by the International Atomic Energy Agency. For BRICS, the conflict has implications beyond West Asia. The declaration stressed the need to protect global supply chains, strengthen maritime security and ensure uninterrupted energy flows through strategic waterways such as the Strait of Hormuz. Disruptions along key shipping routes can affect energy prices, trade flows and the movement of goods across economies. The conflict has also increased concerns over the safety of seafarers operating around strategically important maritime routes. Also Read: PM Modi calls for time-bound action on New Delhi Declaration, extends best wishes to China for BRICS chairship China takes charge of bloc dominated by its economic weight The China presidency is significant because Beijing has a dominant economic position within the expanded BRICS grouping. China accounts for more than half of the bloc’s nominal GDP. With a nominal GDP of around $19.6 trillion, its economy is several times larger than India’s, the second-largest BRICS economy. On a purchasing power parity basis, China also accounts for a substantial share of the grouping’s total output. This economic weight gives Beijing considerable influence, but it also places greater responsibility on China to balance the interests of members with different economic priorities and strategic positions. The Russia-Ukraine war and the West Asia conflict could prove particularly challenging. Russia remains directly involved in the Ukraine conflict, while Iran is at the centre of the West Asia crisis. The conflict has also affected other BRICS members, including Saudi Arabia and the UAE, through higher energy prices, trade disruptions and maritime security concerns. China will therefore have to maintain consensus within a bloc whose members have different positions on major geopolitical conflicts. Payments, local currencies gain momentum The financial agenda at the New Delhi Summit also offers China an opportunity to push practical economic cooperation. While the idea of reducing dependence on the US dollar and a possible common BRICS currency has attracted attention, the New Delhi Declaration did not endorse a common currency. Instead, members backed greater use of national currencies in trade and investment and efforts to improve the interoperability of payment systems. The BRICS Payment Task Force has been examining ways to make cross-border payments faster, cheaper, more accessible, transparent and secure. The declaration also noted work on interoperable payment and messaging channels. The approach could prove more achievable than creating a single BRICS currency. Greater use of national currencies and better-connected payment systems could reduce transaction costs and provide members with alternatives for cross-border trade. BRICS members carry common concerns into G20 BRICS priorities are also likely to overlap with discussions at the G20, particularly on trade, global governance and the concerns of developing economies. Six of the 11 BRICS members are individual G20 members: Brazil, Russia, India, China, South Africa and Indonesia. This gives the bloc significant representation in the wider global economic forum. The weaponisation of trade, ongoing wars, supply-chain disruptions and greater representation for the Global South in institutions such as the United Nations, UN Security Council and World Trade Organization are likely to remain key issues. As China begins its BRICS presidency, Beijing will therefore face the challenge of converting the grouping’s growing economic and political weight into coordinated action. The New Delhi Summit has already identified several practical areas, including local-currency trade, cross-border payments, supply-chain resilience and maritime security. The expectation set by Modi is clear: BRICS must now move from commitments to “concrete results”.

As China takes over the BRICS chairship, the grouping faces the challenge of turning its growing economic weight into practical cooperation on conflicts, supply chains, maritime security and cross-border payments while expanding the use of local currencies.

China takes BRICS chair: Wars, trade disruptions and local-currency trade in focus

Amid growing chatter over the possibility of BRICS countries launching a common currency, India on Saturday &nbsp;(Sept 12) made it clear that no such proposal is currently under consideration by the grouping.&nbsp;Sudhakar Dalela, Secretary (Economic Relations) in the Ministry of External Affairs, said BRICS members are instead continuing discussions on settling bilateral trade in local currencies to lower transaction costs.&nbsp;“There is no proposal in the BRICS for a BRICS currency, as of now,” Dalela said while briefing the media after the 18th BRICS Summit in New Delhi.&nbsp;His remarks came as BRICS countries continued efforts to strengthen cross-border payment mechanisms and make trade between member nations more efficient. While the grouping is exploring greater use of local currencies for trade settlements, the discussions do not currently involve creating a single BRICS currency.<h2>BRICS focuses on local currency trade settlements</h2>Dalela said discussions on settling trade in local currencies have been taking place within BRICS for some time and are not a new initiative.&nbsp;“Discussion on trade settlement in local currency has been underway for some time in BRICS; it's not a new subject,” he said.&nbsp;He described local currency settlement as a practical option for bilateral trade that could help reduce transaction costs. However, he stressed that the mechanism is not intended to replace the existing global payment and settlement framework.&nbsp;“We believe local currency settlement is a practical mechanism to reduce transaction cost in bilateral trade. This has been encouraged as complementary to global payment and settlement system, improving overall global trade across nations,” Dalela said.&nbsp;The New Delhi Declaration backed continued work on trade settlements and investments using BRICS local currencies, while recognising national priorities and the absence of a one-size-fits-all approach. It also said the BRICS Payment Task Force is examining the interoperability of cross-border payment and messaging channels and encouraged it to develop solutions that are “fast, low-cost, more accessible, efficient, transparent, and safe.”&nbsp;Also Read: <a href="https://www.wionews.com/india-news/differences-should-not-become-disputes-modi-xi-stress-long-term-india-china-ties-during-bilateral-talks-1789223230359">‘Differences should not become disputes’: Modi, Xi stress long term India-China ties during bilateral talks</a>&nbsp;Beyond payments, the declaration outlined several other economic initiatives, including the New Investment Platform, the Multilateral Guarantees initiative, a proposed Insurance Resilience Centre and a Risk Lab at GIFT City. It also referred to amendments to the CRA treaty, greater tax and customs cooperation, and measures to strengthen financing for MSMEs, including the Jaipur Consensus on invoice discounting.&nbsp;The grouping also highlighted cooperation in Special Economic Zones and global value chains, while noting the expanding role of the New Development Bank in supporting BRICS countries.

India has ruled out any current proposal for a common BRICS currency, while saying the grouping is focused on using local currencies for bilateral trade and improving cross-border payment systems.

Amid growing chatter over the possibility of BRICS countries launching a common currency, India on Saturday (Sept 12) made it clear that no such proposal is currently under consideration by the grouping. Sudhakar Dalela, Secretary (Economic Relations) in the Ministry of External Affairs, said BRICS members are instead continuing discussions on settling bilateral trade in local currencies to lower transaction costs. “There is no proposal in the BRICS for a BRICS currency, as of now,” Dalela said while briefing the media after the 18th BRICS Summit in New Delhi. His remarks came as BRICS countries continued efforts to strengthen cross-border payment mechanisms and make trade between member nations more efficient. While the grouping is exploring greater use of local currencies for trade settlements, the discussions do not currently involve creating a single BRICS currency. BRICS focuses on local currency trade settlements Dalela said discussions on settling trade in local currencies have been taking place within BRICS for some time and are not a new initiative. “Discussion on trade settlement in local currency has been underway for some time in BRICS; it's not a new subject,” he said. He described local currency settlement as a practical option for bilateral trade that could help reduce transaction costs. However, he stressed that the mechanism is not intended to replace the existing global payment and settlement framework. “We believe local currency settlement is a practical mechanism to reduce transaction cost in bilateral trade. This has been encouraged as complementary to global payment and settlement system, improving overall global trade across nations,” Dalela said. The New Delhi Declaration backed continued work on trade settlements and investments using BRICS local currencies, while recognising national priorities and the absence of a one-size-fits-all approach. It also said the BRICS Payment Task Force is examining the interoperability of cross-border payment and messaging channels and encouraged it to develop solutions that are “fast, low-cost, more accessible, efficient, transparent, and safe.” Also Read: ‘Differences should not become disputes’: Modi, Xi stress long term India-China ties during bilateral talks Beyond payments, the declaration outlined several other economic initiatives, including the New Investment Platform, the Multilateral Guarantees initiative, a proposed Insurance Resilience Centre and a Risk Lab at GIFT City. It also referred to amendments to the CRA treaty, greater tax and customs cooperation, and measures to strengthen financing for MSMEs, including the Jaipur Consensus on invoice discounting. The grouping also highlighted cooperation in Special Economic Zones and global value chains, while noting the expanding role of the New Development Bank in supporting BRICS countries.

India has ruled out any current proposal for a common BRICS currency, while saying the grouping is focused on using local currencies for bilateral trade and improving cross-border payment systems.

Common BRICS currency not on cards ‘as of now’: MEA backs local currency settlement

The economist who coined the BRICS acronym during his time at Goldman Sachs has derided the idea of the group of emerging nations developing their own currency as 'ridiculous', as Brazil, Russia, India, China, and South Africa contemplate expanding the bloc.&nbsp;

Lord Jim O'Neill, who introduced the term BRICS in a 2001 research note as chief economist at Goldman Sachs, claimed in an interview with Financial Times that beyond geopolitical symbolism, BRICS has not achieved anything substantial since its inception.

The current BRICS five contribute 31.5 per cent of global GDP overtaking the cumulative financial strength of Group of Seven (Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States, as well as the European Union) nations who contribute 30 per cent of global GDP.

The BRICS is expected to contribute over 50 per cent of global GDP by 2030, with the proposed enlargement almost certainly bringing that forward.

<h2>BRICS expansion: Discourse over common currency and countering dollar's dominance</h2>

The BRICS nations are contemplating a definite expansion during the upcoming summit in South Africa next week. At the same time, Brazil's President Lula has staunchly called for countering the dollar's dominance, an assertion which has found support from host South Africa's President Cyril Ramaphosa.&nbsp;

Also read |&nbsp;<a href="https://www.wionews.com/business-economy/brazils-president-lula-assents-to-common-brics-currency-to-counter-us-dollars-dominance-582289">Brazil's President Lula seeks common BRICS currency to counter US dollar's dominance</a>

Russia and China, too, have called for challenging the US dollar's global reserve currency status.

Also read |&nbsp;<a href="https://www.wionews.com/business-economy/why-cant-we-trade-in-our-own-currencies-brazils-lula-repeats-de-dollarisation-call-of-brics-nations-608490">'Why can’t we trade in our own currencies?': Brazil's Lula repeats de-dollarisation call of BRICS nations</a>

O’Neill&nbsp;also slammed the proposition of a BRICS central bank, saying it will be difficult to implement.

<h2>Is a potential expansion of BRICS creating jitters in the West?</h2>

Yes, it is. This is because an expansion of BRICS on the lines of economic cooperation would seek alternative financial pathways for international trade against US-dominated SWIFT and the dollar as the default currency for the market.

Also watch |&nbsp;Is BRICS raging against the US Dollar an exercise in futility?

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At the same time, New Delhi would seek assurances from China to not oppose its bid for a permanent membership at the UN Security Council as many nations who constitute 'Friends of BRICS' (the supposed members who could become part of the bloc upon successful expansion) support reforms at the UN Security Council.

<h2>Is India opposing expansion of BRICS?</h2>

Reports in the Western media that India opposes the proposition of expansion of BRICS with the inclusion of other countries of the Global South are imprecise.

New Delhi has sought wider consultation on BRICS expansion but at the same time has expressed positive support for China's proposal to expand the bloc despite the bilateral divergences between Beijing and New Delhi.&nbsp;

India's foreign minister Dr S Jaishankar has asserted that BRICS is "an established feature of the global landscape".

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The economist who coined the BRICS acronym during his time at Goldman Sachs has derided the idea of the group of emerging nations developing their own currency as 'ridiculous', as Brazil, Russia, India, China, and South Africa contemplate expanding the bloc.

The economist who coined the BRICS acronym during his time at Goldman Sachs has derided the idea of the group of emerging nations developing their own currency as 'ridiculous', as Brazil, Russia, India, China, and South Africa contemplate expanding the bloc. Lord Jim O'Neill, who introduced the term BRICS in a 2001 research note as chief economist at Goldman Sachs, claimed in an interview with Financial Times that beyond geopolitical symbolism, BRICS has not achieved anything substantial since its inception. The current BRICS five contribute 31.5 per cent of global GDP overtaking the cumulative financial strength of Group of Seven (Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States, as well as the European Union) nations who contribute 30 per cent of global GDP. The BRICS is expected to contribute over 50 per cent of global GDP by 2030, with the proposed enlargement almost certainly bringing that forward. BRICS expansion: Discourse over common currency and countering dollar's dominance The BRICS nations are contemplating a definite expansion during the upcoming summit in South Africa next week. At the same time, Brazil's President Lula has staunchly called for countering the dollar's dominance, an assertion which has found support from host South Africa's President Cyril Ramaphosa. Also read | Brazil's President Lula seeks common BRICS currency to counter US dollar's dominance Russia and China, too, have called for challenging the US dollar's global reserve currency status. Also read | 'Why can’t we trade in our own currencies?': Brazil's Lula repeats de-dollarisation call of BRICS nations O’Neill also slammed the proposition of a BRICS central bank, saying it will be difficult to implement. Is a potential expansion of BRICS creating jitters in the West? Yes, it is. This is because an expansion of BRICS on the lines of economic cooperation would seek alternative financial pathways for international trade against US-dominated SWIFT and the dollar as the default currency for the market. Also watch | Is BRICS raging against the US Dollar an exercise in futility? × At the same time, New Delhi would seek assurances from China to not oppose its bid for a permanent membership at the UN Security Council as many nations who constitute 'Friends of BRICS' (the supposed members who could become part of the bloc upon successful expansion) support reforms at the UN Security Council. Is India opposing expansion of BRICS? Reports in the Western media that India opposes the proposition of expansion of BRICS with the inclusion of other countries of the Global South are imprecise. New Delhi has sought wider consultation on BRICS expansion but at the same time has expressed positive support for China's proposal to expand the bloc despite the bilateral divergences between Beijing and New Delhi. India's foreign minister Dr S Jaishankar has asserted that BRICS is "an established feature of the global landscape". WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

BRICS' idea of 'common currency', potential expansion creates jitters in the West

BRICS nations are leading the Greenback backlash against the global hegemony of the US dollar. A potential new shared currency between them, they say, could shield other member countries from the impact of sanctions such as the ones imposed against Russia by the United States and European countries.

The foreign ministers of Brazil, Russia, India, China and South Africa met in Cape Town earlier this week. The shared currency for international trade among the bloc's nations was an issue that topped their agenda.

The BRICS are looking to “ensure that we do not become victims to sanctions that have secondary effects on countries that have no involvement in issues that have led to those unilateral sanctions,” Naledi Pandor, South Africa’s minister of international relations, told reporters after the meeting.

Also read |&nbsp;<a href="https://www.wionews.com/business-economy/brics-backed-new-development-bank-invites-saudi-arabia-to-join-the-club-598674">BRICS-backed New Development Bank invites Saudi Arabia to join the club</a>

As part of bloc's efforts to come up with a shared currency, proposals are reportedly being considered by officials at the New Development Bank, the Shanghai-based lender created by BRICS nations, and the BRICS "will be guided to them as to what the future models might be," Pandor said.

<h2>Greenback backlash: What else is happening?</h2>

All over the world, a backlash is brewing against the hegemony of the US dollar.&nbsp;

Brazil and China recently struck a deal to settle trade in their local currencies, seeking to bypass the US dollar.&nbsp;

India and Malaysia have also signed an accord to ramp up usage of the rupee in bilateral trade.&nbsp;

Among its allies, France is starting to complete transactions in yuan.&nbsp;

Also watch |&nbsp;Gravitas: India asks BRICS to fight for terror

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In this sudden wave of agreements aimed at sidestepping the greenback, experts detect a sort of gradual, meaningful action that was missing in the past.&nbsp;

For many countries, their reasons for taking these measures are not much different from one another.&nbsp;

The US dollar, they say, is being weaponised to push America’s foreign-policy priorities and punish those that oppose them.&nbsp;

"Countries have chafed for decades under US dollar dominance," Jonathan Wood, principal for global issues at consultancy Control Risks was quoted as saying by Bloomberg.&nbsp;

"More aggressive and expansive use of US sanctions in recent years reinforces this discomfort—and coincides with demands by major emerging markets for a new distribution of global power," he added.&nbsp;

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BRICS nations are leading the Greenback backlash against the global hegemony of the US dollar. A potential new shared currency between them, they say, could shield other member countries from the impact of sanctions such as the ones imposed against Russia by the United States and European countries.

BRICS nations are leading the Greenback backlash against the global hegemony of the US dollar. A potential new shared currency between them, they say, could shield other member countries from the impact of sanctions such as the ones imposed against Russia by the United States and European countries. The foreign ministers of Brazil, Russia, India, China and South Africa met in Cape Town earlier this week. The shared currency for international trade among the bloc's nations was an issue that topped their agenda. The BRICS are looking to “ensure that we do not become victims to sanctions that have secondary effects on countries that have no involvement in issues that have led to those unilateral sanctions,” Naledi Pandor, South Africa’s minister of international relations, told reporters after the meeting. Also read | BRICS-backed New Development Bank invites Saudi Arabia to join the club As part of bloc's efforts to come up with a shared currency, proposals are reportedly being considered by officials at the New Development Bank, the Shanghai-based lender created by BRICS nations, and the BRICS "will be guided to them as to what the future models might be," Pandor said. Greenback backlash: What else is happening? All over the world, a backlash is brewing against the hegemony of the US dollar. Brazil and China recently struck a deal to settle trade in their local currencies, seeking to bypass the US dollar. India and Malaysia have also signed an accord to ramp up usage of the rupee in bilateral trade. Among its allies, France is starting to complete transactions in yuan. Also watch | Gravitas: India asks BRICS to fight for terror × In this sudden wave of agreements aimed at sidestepping the greenback, experts detect a sort of gradual, meaningful action that was missing in the past. For many countries, their reasons for taking these measures are not much different from one another. The US dollar, they say, is being weaponised to push America’s foreign-policy priorities and punish those that oppose them. "Countries have chafed for decades under US dollar dominance," Jonathan Wood, principal for global issues at consultancy Control Risks was quoted as saying by Bloomberg. "More aggressive and expansive use of US sanctions in recent years reinforces this discomfort—and coincides with demands by major emerging markets for a new distribution of global power," he added. WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

Greenback backlash: BRICS 'common currency' targets economic weaponisation of US dollar

The dominance of US dollar in global trade is facing a significant challenge as emerging global economies, such as China and India, step forward to trade in their own currencies. Besides, countries either seen as aligned or neutral by the West in terms of the ongoing Russian offensive in Ukraine, are increasingly banding together to focus on mutual global finance.

<h2>BRICS currency to challenge US dollar's dominance?</h2>

The BRICS (Brazil, Russia, India, China and South Africa) countries are reportedly exploring the creation of a common currency for trade amongst themselves. A new financial arrangement, seen with a potential to translate into a common BRICS currency, could be announced as soon as in August 2023 at the forthcoming BRICS summit in South Africa.

While speaking at the St. Petersburg International Economic Forum event in New Delhi, India, last week, Alexander Babakov, the deputy chairman of Russian parliament the State Duma, said that the plan is to initially transition to using domestic currencies in transactions. Following this, the introduction and circulation of a digital or an alternative form of currency could be explored. The potential introduction of a common BRICS currency is significant given the bilateral differences between India and China due to ongoing military standoff along the Line of Actual Control between the two Asian giants.&nbsp;&nbsp;

Babakov pointed out that the BRICS leaders summit will reveal a preparedness to implement this particular initiative, with work on the project ongoing, Russian news agency Sputnik reported.

ALSO WATCH |&nbsp;Gravitas: India pushes for trade in rupee

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"The US dollar plays a far too dominant role in global finance," Jim O’Neill, the former Goldman Sachs Group Inc. chief economist who coined the acronym BRIC, wrote in a paper published in the Global Policy journal last month.

"Whenever the Federal Reserve Board has embarked on periods of monetary tightening, or the opposite, loosening, the consequences on the value of the dollar and the knock-on effects have been dramatic."

Brazil, Russia, India and China established BRIC in 2009 and the bloc became BRICS a year later when South Africa was admitted.&nbsp;

If it expands to include other "emerging nations with persistent surpluses," a globally fairer, multi-currency global system could emerge, O’Neill said.&nbsp;

<h2>India, China march forward to internationalise their currencies</h2>

India has been making consistent efforts to replace the dollar with rupee as global reserve currency. New Delhi is offering countries facing dollar shortage to settle their trade payments in Indian rupee. The country aims to “disaster proof” countries in its immediate neighbourhood and the one with which it shares significant trade volumes.&nbsp;

ALSO READ |&nbsp;<a href="https://www.wionews.com/south-asia/rupee-and-taka-to-replace-dollar-as-currency-of-exchange-between-india-bangladesh-568558">Rupee and Taka to replace Dollar as currency of exchange between India, Bangladesh</a>

China set up its own commodity exchange in Shanghai – the Shanghai International Energy Exchange (INE) in 2018 for oil deliveries from countries such as Iran, Venezuela and Russia. The contracts traded in INE are solely in the Chinese renminbi.&nbsp;

ALSO READ |&nbsp;<a href="https://www.wionews.com/south-asia/sri-lanka-to-use-indian-rupee-for-international-trade-543895">Sri Lanka to use Indian rupee for international trade, more countries aim to follow</a>

A potential deal between China and Saudi Arabia to settle trade transactions in renminbi may further push back the US dollar from the oil territory.

<h2>Why uproar against the US dollar's dominance in global trade?&nbsp;</h2>

This is because the US dollar, almost hegemonically, is a dominant force in global finance. This can be best illustrated by the US dollar's status in global oil trading. Most of the trade is denominated in the US dollars even when neither the barrels of crude (in terms of country of origin) nor the parties trading it have anything to do with it.&nbsp;

According to Basel, Switzerland-based Bank for International Settlements, approximately half of global trade is invoiced in US dollars.&nbsp;

This disproportionately large reliance on the US dollar is in spite of the United States accounting for just over a 10th of global trade.

The dollar’s dominance in global trade means the burden of dollar-denominated debt for other nations rises and falls with the exchange rate. This destabilises the economies of the countries with US monetary policy often playing a defining role than its own domestic decisions.

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The dominance of US dollar in global trade is facing a significant challenge as emerging global economies, such as China and India, step forward to trade in their own currencies.

The dominance of US dollar in global trade is facing a significant challenge as emerging global economies, such as China and India, step forward to trade in their own currencies. Besides, countries either seen as aligned or neutral by the West in terms of the ongoing Russian offensive in Ukraine, are increasingly banding together to focus on mutual global finance. BRICS currency to challenge US dollar's dominance? The BRICS (Brazil, Russia, India, China and South Africa) countries are reportedly exploring the creation of a common currency for trade amongst themselves. A new financial arrangement, seen with a potential to translate into a common BRICS currency, could be announced as soon as in August 2023 at the forthcoming BRICS summit in South Africa. While speaking at the St. Petersburg International Economic Forum event in New Delhi, India, last week, Alexander Babakov, the deputy chairman of Russian parliament the State Duma, said that the plan is to initially transition to using domestic currencies in transactions. Following this, the introduction and circulation of a digital or an alternative form of currency could be explored. The potential introduction of a common BRICS currency is significant given the bilateral differences between India and China due to ongoing military standoff along the Line of Actual Control between the two Asian giants. Babakov pointed out that the BRICS leaders summit will reveal a preparedness to implement this particular initiative, with work on the project ongoing, Russian news agency Sputnik reported. ALSO WATCH | Gravitas: India pushes for trade in rupee × "The US dollar plays a far too dominant role in global finance," Jim O’Neill, the former Goldman Sachs Group Inc. chief economist who coined the acronym BRIC, wrote in a paper published in the Global Policy journal last month. "Whenever the Federal Reserve Board has embarked on periods of monetary tightening, or the opposite, loosening, the consequences on the value of the dollar and the knock-on effects have been dramatic." Brazil, Russia, India and China established BRIC in 2009 and the bloc became BRICS a year later when South Africa was admitted. If it expands to include other "emerging nations with persistent surpluses," a globally fairer, multi-currency global system could emerge, O’Neill said. India, China march forward to internationalise their currencies India has been making consistent efforts to replace the dollar with rupee as global reserve currency. New Delhi is offering countries facing dollar shortage to settle their trade payments in Indian rupee. The country aims to “disaster proof” countries in its immediate neighbourhood and the one with which it shares significant trade volumes. ALSO READ | Rupee and Taka to replace Dollar as currency of exchange between India, Bangladesh China set up its own commodity exchange in Shanghai – the Shanghai International Energy Exchange (INE) in 2018 for oil deliveries from countries such as Iran, Venezuela and Russia. The contracts traded in INE are solely in the Chinese renminbi. ALSO READ | Sri Lanka to use Indian rupee for international trade, more countries aim to follow A potential deal between China and Saudi Arabia to settle trade transactions in renminbi may further push back the US dollar from the oil territory. Why uproar against the US dollar's dominance in global trade? This is because the US dollar, almost hegemonically, is a dominant force in global finance. This can be best illustrated by the US dollar's status in global oil trading. Most of the trade is denominated in the US dollars even when neither the barrels of crude (in terms of country of origin) nor the parties trading it have anything to do with it. According to Basel, Switzerland-based Bank for International Settlements, approximately half of global trade is invoiced in US dollars. This disproportionately large reliance on the US dollar is in spite of the United States accounting for just over a 10th of global trade. The dollar’s dominance in global trade means the burden of dollar-denominated debt for other nations rises and falls with the exchange rate. This destabilises the economies of the countries with US monetary policy often playing a defining role than its own domestic decisions. WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.