New Delhi, Mar 31: India’s leading body of exporters, FIEO, has welcomed agreement among BRICS members to promote trade in local currencies.
The agreement was signed here on Thursday during the fourth summit meeting of the five large emerging economics comprising India, China, Russia, Brazil and South Africa.
Federation of Indian Export Organisations (FIEO) president Rafeeque Ahmed said, trade among these countries in local currencies will not only reduce dollar and euro dependency but also insulate their exporters from sharp fluctuations in the rates of these two dominant currencies.
The move will increase trade among BRICS nations which is currently less than its potential, he said, adding exports among the five nations are just around 9 per cent, while imports constitutes about 12 per cent.
India’s trade with BRICS countries was 87 billion dollars in 2010-11, with exports amounting to 29.5 billion dollar and imports costing 57.5 billion dollars.
Intra-BRICS trade in local currencies, Mr Ahmed said, may also address the issue of widening trade deficit among a few BRICS partners by encouraging imports from such countries to those countries which have favourable trade balance.
China, the largest economy at over 5 trillion dollars among the BRICS nations, enjoys a huge trade surplus but is accused of manipulating its currency ‘renminbi’ to the disadvantage of its trading partners. In view of this, it remains to be seen how the pact signed in New Delhi pans out among BRICS countries. (UNI)



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