India Clarifies Its Stance on What BRICS Pay Actually Does

India has issued a clarification on what the BRICS Pay system actually does and how it works. Pawan Joshi, the Chairman of BRICS International, clarified that the cross-border payment mechanism’s core initiative is designed to build financial bridges and boost national sovereignty. He made it clear that the payment system has no aim to replace the traditional financial sector.

The BRICS Pay system does not mean de-dollarization, said Joshi to ANI. “The focus here is sovereignty,” he said. “Our country is a great country, under great leadership. Our vision is to bring our country into a fully sovereign setup. This alliance is on that aspect, and that is the system we are working on,” he said. Joshi rejected all claims that the new payment system was designed to uproot the existing monetary system.

Also Read: Russia Aims For BRICS Declaration With 90% Trade in Local Currencies

BRICS Pay System Does Not Promote De-Dollarization, India Clarifies

The BRICS Pay system does not promote de-dollarization and is only a cross-border mechanism to settle payments. The idea is to use the national currencies of member nations and bolster trade within the grouping. The development will also enable businesses to settle transactions faster with little to no exchange rate risk. This saves businesses tons of money in the long run and also strengthens the prospects of local currencies.

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