Brazil and India deepen strategic ties amid shifting global order
Brazil's foreign minister says Brazil and India are forging strategic ties for a changing world, and clarifies that local-currency trade settlement is not an attempt to replace the dollar.
Brazil and India are strengthening their strategic partnership to meet the demands of a changing global landscape, Brazil's foreign minister said, positioning the two nations as increasingly aligned players in a shifting international order.
The minister also addressed questions about whether the BRICS grouping is seeking to displace the United States dollar, rejecting the suggestion that the bloc's currency arrangements amount to a challenge to the greenback.
According to the minister, the use of local currencies to settle part of bilateral trade is a practice that many countries already follow. Such arrangements, the minister noted, are not unusual in international commerce.
Governments, the minister added, do not direct private companies on which currency they must use for their transactions. The decision on currency remains with businesses themselves, the minister said, drawing a distinction between state policy and corporate choice.
The remarks place the focus on practical trade facilitation rather than any broader monetary confrontation, even as BRICS economies continue to explore ways to reduce transaction costs and reliance on third-party currencies in their mutual dealings.