March 28, 2023

The U.S. dollar’s dominance in the international oil trade is under threat as Western sanctions on Russia and oil trading between Moscow and India have started to erode its decades-old dominance. According to Reuters, the oil deals between India and Russia have been settled in other currencies, putting pressure on the U.S. dollar’s dominance in the oil trade. Sources say non-U.S. currencies used in India-Russia oil deals total “several hundred million dollars.”

This is not the first time that analysts and economists have suggested that BRICS nations are attempting to undermine the U.S. dollar. In recent months, Bitcoin.com News has reported on several instances where Brazil, Russia, India, China, and South Africa have been working to reduce their dependence on the U.S. dollar.

The move away from the U.S. dollar in the oil trade is significant as it has been the dominant currency for oil trading for decades. However, with the rise of other currencies, such as the euro and the yuan, the U.S. dollar’s dominance is being challenged.

The shift away from the U.S. dollar in the oil trade is also a reflection of the changing geopolitical landscape. With Western sanctions on Russia and the growing influence of BRICS nations, the U.S. dollar’s dominance is no longer assured.

While it is too early to say whether the U.S. dollar will lose its dominance in the oil trade, the trend towards using other currencies is likely to continue. As BRICS nations continue to grow in influence, the U.S. dollar’s dominance in the global economy is likely to be challenged in other areas as well.

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