New Delhi, September 14 (Daily Kiran) : Former diplomat and strategic expert K.P. Fabian has voiced strong opposition to the idea of a shared currency among BRICS nations during discussions at the recent BRICS summit. He stated that India should not support this proposal, emphasizing that 95% of trade between India and Russia is already conducted in national currencies.
Fabian warned that adopting a shared currency could undermine financial sovereignty, with China likely to exert significant influence over such a system. He noted that the term “de-dollarization,” often mentioned in Indian media, does not accurately capture the complexities of reducing reliance on the U.S. dollar. Instead, he advocates for increased use of national currencies.
He pointed out that both China and Russia already settle their trade in their respective currencies, and India and Russia conduct nearly all their trade in national currencies. According to Fabian, the idea of a shared currency is not broadly supported among BRICS countries, with China being the exception.
If a shared currency were to be established, he explained, it would diminish countries’ control over their economic and financial policies, limiting their ability to adjust interest rates as needed. Currently, he believes India is not prepared for such an arrangement, and even if a shared currency were to emerge in the future, China’s dominance would be inevitable.
Fabian also commented on the issue of reforming the United Nations Security Council and India’s bid for permanent membership. He expressed skepticism about any significant progress, stating that while Russia and China have acknowledged India’s aspirations, they have not explicitly supported India’s claim for permanent membership.
Regarding the BRICS declaration condemning cross-border terrorism, Fabian welcomed the strong language used, which aligns with India’s long-standing concerns. However, he stressed that mere statements are insufficient. The real test will come when proposals to officially designate certain Pakistani terrorist organizations arise in the UN Security Council, and it remains to be seen whether China will cooperate.
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