China must “come around” and reduce trade deficits with other developing nations to accelerate the use of local currencies, according to Anil Agarwal, the billionaire founder of India’s Vedanta Resources Ltd.
(Bloomberg) — China must “come around” and reduce trade deficits with other developing nations to accelerate the use of local currencies, according to Anil Agarwal, the billionaire founder of India’s Vedanta Resources Ltd.
Leaders of the BRICS bloc — Brazil, Russia, India, China and South Africa — will discuss reducing the use of dollars for trade at their summit on Wednesday. India’s trade deficit with China last year was almost $85 billion. Brazil, South Africa and Russia, meanwhile, enjoy a trade surplus with the Asian nation.
“China has to come around,” and rebalance trade with other nations, he said in an interview at Bloomberg’s Johannesburg office. “Total dollar domination will come down. It’s not going to happen 100%, but it’s going to start.”
The bloc expects their growing heft to help reduce dependence on the greenback. Leaders will look at ways to boost payments in members’ currencies, part of a wider ambition to challenge the geopolitical leadership of the US.
“There’s very strong talk” of finding ways to reduce dependence on dollars at the summit, Agarwal said.
–With assistance from Amogelang Mbatha.
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