Beyond BRICS Currency Debate: Real Test Lies In Competitiveness

According to Ambassador Sanjay Bhattacharyya, former BRICS Sherpa and Professor at O.P. Jindal Global University, there has never been any mention of a “BRICS currency” within the framework. Speaking at the BRICS: Business and Sustainability conclave hosted by The Secretariat on 1 October, 2026, Bhattacharyya pointed to the significant differences between member economies and the level of monetary and fiscal coordination that would be required for a common currency.

“In the room in BRICS, there has never been any mention of anything called a BRICS currency. It’s never been in the room,” Bhattacharyya highlighted.

Transactions In Local Currencies

The discourse, then, turns inwards, towards mechanisms that would allow trade without the need for a single currency. Ajay Srivastava, Founder of the Global Trade Research Initiative, said a more viable path might be to increase transactions in local currencies, rather than going through the dollar. "BRICS nations should aim at increasing local currency trade… it makes tremendous economic sense," Srivastava further said.

Srivastava also noted that these should be implemented beyond bilateral terms. A wider platform where multiple currencies are involved in transactions would make it easier for countries to deal with surpluses and deficits of trading partners than to balance trade between two countries.

Competitiveness remains central

For Rahul Ahluwalia, Founder-Director of the Foundation for Economic Development, however, the larger question is not simply how India manages its trade deficit, but whether its domestic economy can become competitive enough to attract production and investment. "You don't have to worry about trade deficit; you need to boost competitiveness by improving internal systems," Ahluwalia said.

He pointed to the importance of more responsive systems, productivity, and ease of doing business. 

Echoing the views, Bhattacharyya associated competitiveness and preparedness of individual economies with trade opportunities. When it comes to investment decisions, he said, businesses look at returns and the convenience of running the business, and that the uncertainty of the supply chain is driving countries towards diversification.

Wider economic role for BRICS

The inclusion of BRICS countries can provide more economic depth, as the economies of these states, combined together, have a higher amount of resources, manufacturing capabilities and markets. Instead of being an EU-style common market, it might be a set of common rules that would enable different governments, businesses and other stakeholders to work together over particular issues.

“A geo-economic shift has already happened; a geo-political shift is happening. Adjustment of the power balance is taking place.”

— Ambassador Sanjay Bhattacharyya

For the BRICS framework, the real test lies not in creating a single currency, but converting economic power into real collaboration. Local-currency payments, resilient supply chains, enhanced trade ties, and more competitive domestic systems are critical.