India Won't De-Dollarize Trade, Focus on Derisking: RBI Governor

Mumbai, Dec 6 (PTI) Reserve Bank Governor Shaktikanta Das on Friday said India does not have any plans to 'de-dollarise' its trade and is only looking at derisking it by other means.

He was responding to a question on US President-elect Donald Trump's threat that BRICS countries will face 100 per cent tariffs if they choose to move away from the US dollar.

"With regard to the de-dollarisation etc...so far as India is concerned, there is no step which we have taken which specifically wants to de-dollarise," Das told reporters at the central bank headquarters here.

On the BRICS currency, he mentioned that it is an idea floated by one of the members of the grouping, which includes Brazil, Russia, India, China and South Africa, but added that there has been no progress on it beyond some discussions.

He said BRICS countries are scattered across the globe and pointed out that contiguity has helped in the success of a single currency for the European Union.

Das said India's attempts are limited at permitting vostro accounts and entering into agreements with two countries for settling trade transactions in local currency.

"That is basically to derisk our trade. Dependence on one currency can be problematic at times because of appreciation or depreciation. De-dollarisation is certainly not our objective, it is not on the table at all," he said.