BRICS Discusses Common Currency to Reduce Dollar Dependency
BRICS member nations have intensified discussions on creating a common currency or an alternative payment system to facilitate trade.
Key Points for Quick Revision
- BRICS exploring alternative payment systems to the US Dollar.
- Focus on 'de-dollarization' of global trade.
- New members (BRICS+) participating in the initiative.
- Role of New Development Bank (NDB) in supporting local currency trade.
How This Topic is Tested in Competitive Exams
| Exam | Frequency | Approx. Marks | What Gets Asked |
|---|---|---|---|
| UPSC / State PCS | Very High | 10–20 | International relations is a core GS-II topic for UPSC. Bilateral agreements, multilateral bodies, and geopolitics are essential. |
| Banking (IBPS / SBI) | Medium | 2–4 | G20, IMF/World Bank decisions, and global trade events are tested in banking exams. |
| SSC (CGL / CHSL / MTS) | Medium | 2–4 | International summits, treaties, and India's bilateral relations appear in SSC GK. |
What to Memorize from This Topic
- Summit venue, participating nations, key outcomes, and India's stand
- Bilateral agreements: India + partner country, subject area, signing date
- Multilateral organizations: new members, leadership changes, major resolutions
- India's position on key global issues: UN voting, climate, trade
- Indices: Global Peace Index, Press Freedom Index, India's rank and change
Practice Questions
Q1. What is the primary goal of the proposed BRICS currency?
- To replace the Euro
- To reduce dependency on the US Dollar
- To create a single global government
- To fix exchange rates
Explanation: The proposed currency aims to facilitate trade between BRICS nations without relying on the US Dollar.
Q2. Where is the headquarters of the New Development Bank (NDB) located?
- New Delhi
- Moscow
- Shanghai
- Johannesburg
Explanation: The New Development Bank (NDB), formerly known as the BRICS Development Bank, is headquartered in Shanghai, China.
How to Prepare International Affairs for Government Exams
Focus on India-centric news — India's bilateral visits, MoUs signed, and positions in international bodies. This is what domestic exams test.
For UPSC, understand geopolitical context: Why does India take a particular position? What is India's strategic interest?
Keep a running note of all G20, SCO, BRICS, and QUAD-related outcomes. These bodies generate 3–5 questions per major exam cycle.