UAE Shifts from US Dollar to Crypto for Oil Trade: Impact on BRICS

• UAE Encourages BRICS Countries to Settle Oil Trade in Local Currencies
• Impacts on the U.S. Economy
• UAE's Talks with 15 Countries
• UAE Touts Local Currency Payments for Oil
• Saudi Arabia's Openness to Local Currencies for Oil Shipments
• Conclusion

UAE Encourages BRICS Countries to Settle Oil Trade in Local Currencies

The United Arab Emirates (UAE) is encouraging BRICS nations to settle oil trade transactions in their local currencies, rather than in U.S. dollars. This strategy is part of the UAE's efforts to diversify its economic relationships and update its oil trade payment methods. The target countries include notable economies such as China, Russia, India, and Egypt, with the aim to side-line the American dollar in oil settlements.

Impacts on the U.S. Economy

A shift away from the U.S. dollar in oil trade could have significant implications for numerous sectors within the U.S. economy.

UAE's Talks with 15 Countries

Reports indicate that the UAE is currently negotiating with 15 countries, championing the use of local currency payments to end dependence on the U.S. dollar. Such strategic realignment could spur a dramatic shift in the BRICS countries' financial approach. By taking control of the global oil sector and ending U.S. dollar dependence, BRICS could potentially evolve into an economic powerhouse.

UAE Touts Local Currency Payments for Oil

The UAE has begun executing oil trade deals in local currencies, focusing on devaluing the U.S. dollar's dominance in the oil trade, as demonstrated in recent dealings with India. A notable example is the shipment of over one million barrels of oil to India, with the payment settled in the Indian Rupee. This transaction, initiated in September, marked a significant departure from the traditional usage of the U.S. dollar.

Saudi Arabia's Openness to Local Currencies for Oil Shipments

Similarly, Saudi Arabia has declared its willingness to accept local currencies for oil shipments. The Kingdom seeks to diversify its reserves by receiving payments in both U.S. dollars and other local currencies.

Conclusion

It appears BRICS countries are leveraging the oil sector in a bid to devalue the U.S. dollar globally. Furthermore, if a growing number of countries begin to pay for oil in their local currencies, the U.S. dollar could suffer a significant blow. With the Middle East following China's steps, de-dollarization initiatives are gradually gaining momentum worldwide.

Edited by Jonathan Stoker