UAE Shakes Crypto World: US Dollar Dropped for BRICS Oil Deals

• BRICS Economic Alliance Fosters De-Dollarization with UAE's Shift to Local Currency in New Oil Deals
• UAE's Search for New Oil Trading Partners
• Implications for US Dollar
• Alignment with BRICS' De-Dollarization Plans

BRICS Economic Alliance Fosters De-Dollarization with UAE's Shift to Local Currency in New Oil Deals

The BRICS economic alliance appears to be accelerating its de-dollarization efforts, causing the United Arab Emirates (UAE) to similarly shift its focus towards local currency in preference to the US dollar in upcoming oil contracts. The country is purportedly on the lookout for fresh oil deals, aligning with the broader trend of de-dollarization within the bloc. The UAE, along with Saudi Arabia, Egypt, Ethiopia, Iran, and Argentina, were the initial six countries incorporated in the first extension endeavor of BRICS.

UAE's Search for New Oil Trading Partners

Emerging reports suggest the UAE's active pursuit for new oil trading alliances, a move that could considerably impact the US dollar. The BRICS alliance has enjoyed notable expansion over the past year. The 2023 summit marked the inclusion of six additional countries, joining the original five member states, and emphasized the plan to dismantle Western currency dominance.

Implications for US Dollar

The Financial Times has reported that the UAE, a member of the BRICS alliance, is on the hunt for fresh oil deals with profound implications for the US dollar. The country intended to leverage the COP28 Summit to analyze potential oil deals. Notably, the UAE is poised to negotiate potential contracts with 15 countries, including BRICS members China, Russia, and Egypt.

Alignment with BRICS' De-Dollarization Plans

These three countries are already part of the BRICS alliance and align with its de-dollarization objectives. Specifically, both China and Russia have introduced robust strategies to transition away from the dollar in trade. Consequently, the UAE's shift in focus would play a crucial role in supporting these objectives.

Edited by Jonathan Stoker