On December 6, former Reserve Bank of India (RBI) Governor Shaktikanta Das clarified that India is not pursuing “de-dollarisation.” While India has taken steps to promote the use of domestic currencies in trade, these are primarily meant to reduce risks in Indian commerce, not to challenge the dominance of the US dollar. This comes after US President-elect Donald Trump warned of 100% tariffs on BRICS countries if they reduce their reliance on the US dollar in trade.

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• Former RBI Governor Shaktikanta Das confirmed India is not aiming for de-dollarisation.
• India is promoting the use of domestic currencies in trade to reduce risk, not to challenge the US dollar.
• The clarification follows US President-elect Donald Trump’s warning about 100% tariffs on BRICS nations.
• India refrains from using the Chinese yuan for Russian oil imports despite Russia’s growing use of the yuan.
• India’s caution against over-dependence on the US dollar is reflected in recent RBI actions.
• The RBI has increased its gold purchases as part of efforts to diversify reserves.
• India has also begun repatriating gold previously held overseas, strengthening domestic reserves.
• India’s approach to de-dollarisation is cautious, balancing domestic currency use with global market realities.
• The US dollar remains the dominant global reserve currency, with few viable alternatives.
• India’s strategy seeks to mitigate trade risks while ensuring economic stability and growth.