What happened?
U.S. President Donald Trump once again threatened BRICS countries (Brazil, Russia, India, China, and South Africa) with high tariffs if the group tried to replace the usage of the dollar in global trade.
Why it Matters to India
Globally, countries have been making efforts to reduce their dependence on the U.S.-led financial system. There have been deliberations within BRICS for conducting trade transactions in the regional currencies. For instance, in 2022, during the Ukraine-Russia war, the Reserve Bank of India permitted the usage of Indian rupees as currency in payments of international trade.