BRICS Chief Cites $90 Billion UPI Volume in De-Dollarization Push
Sameep Shastri argues local currency trade reduces costs, citing $90 billion in digital transactions.
India’s Unified Payments Interface processed $90 billion in digital transactions. This volume serves as the primary evidence for the push toward de-dollarization. Sameep Shastri, Chairman of the BRICS Chamber of Commerce and Industry, made this argument in New Delhi. He stated that local currency trade is the necessary path forward for developing nations. The shift aims to create a multipolar economic system with a greater voice for emerging markets.
Shastri identified three distinct cost layers in dollar-based trade. These include the initial currency purchase, transaction change fees, and associated penalties. He described this structure as a triple penalty for international business. The BRICS Chamber of Commerce and Industry asserts that these costs are unnecessary in a localized framework. The group argues that digital platforms can eliminate these specific financial friction points.
India Faces Trade Deficit Challenge
India currently runs a trade deficit with most BRICS members. This imbalance is driven by high energy imports. The country has a population of 1.4 billion with significant consumption needs. Shastri noted that every household requires LPG and every car requires petrol. These domestic needs necessitate substantial energy purchases from other BRICS nations.
India is negotiating a free trade agreement with the Eurasian Economic Union. This bloc includes Russia as a key member. India and Russia have set a target for bilateral trade. They aim to exceed $100 billion in trade volume by 2030. The goal is to increase Indian exports and balance the current trade flow.
Digital Infrastructure Drives Multipolar Shift
Shastri credited the US for initiating de-dollarization through crypto investment. He argued that this move weakened the dollar's exclusive hold. He stated that the trend is irreversible for developing countries. The BRICS chairship is focusing on resilient and diversified supply chains. Member countries are discussing expanded trade mechanisms during this period.
India is improving manufacturing standards to support export growth. This progress is a prerequisite for reducing the trade deficit. Shastri believes local currency settlement is the only viable solution. He emphasized that the global economic framework is shifting toward balance. The source GN markets/fx (en-US) reported on these strategic shifts in the market desk.
