Kingdom

Yuan

Billion

<div class="watcher-guru">
 <p>The BRICS alliance inducted six new countries into the bloc during the 15th summit in Johannesburg in August this year. Five out of the six countries are leading oil-producing nations that export millions of barrels across the world. Saudi Arabia, the UAE, Egypt, Iran, and Ethiopia are the five oil-exporting countries to join BRICS in 2024. Argentina is the only nation that does not produce oil but allows multinational corporations to initiate local currencies for cross-border transactions.</p>
 <p><strong>Also Read: <a rel="noopener noreferrer nofollow" title="BRICS" href="https://thebittimes.com/tag/brics.html">BRICS</a>: China Dumps Another $22 Billion in US Treasuries &amp; Stocks</strong></p>
 <p>The Kingdom of Saudi Arabia announced recently that they are open to accepting local currencies for oil trade. The move is so significant that it could change the direction of the oil economy putting the US dollar in the back seat. BRICS members India and the UAE have already initiated and settled oil trade in local currency by paying the Dirhams.</p>
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 <p>So what could happen if <a rel="noopener noreferrer nofollow" title="BRICS" href="https://thebittimes.com/tag/brics.html">BRICS</a> asks the US and Europe to settle <a rel="noopener noreferrer nofollow" title="Oil" href="https://thebittimes.com/tag/oil.html">Oil</a> trade in local currencies and not the dollar? In this article, we will highlight what might happen if <a rel="noopener noreferrer nofollow" title="BRICS" href="https://thebittimes.com/tag/brics.html">BRICS</a> demands the US, Europe, and other Western allies to sideline the dollar and pay in local currencies for <a rel="noopener noreferrer nofollow" title="Oil" href="https://thebittimes.com/tag/oil.html">Oil</a>.</p>
 <p><strong>Also Read: US Dollar To Become CBDC &amp; Challenge BRICS De-Dollarization Efforts?</strong></p>
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 <h2 class="wp-block-heading" id="h-brics-what-happens-if-the-us-europe-amp-the-west-are-asked-to-pay-in-local-currency-for-oil">BRICS: What Happens if the US, Europe, &amp; the West Are Asked To Pay in Local Currency For Oil?</h2>
 <figure class="wp-block-image size-large"><img decoding="async" width="1024" height="689" src="https://cdn.thebittimes.com/images/2023/10/20/a864a70bab60f9d2e487b92059fed9ba.webp" alt="usa oil and gas brics local currency payments" class="wp-image-108731" srcset="https://cdn.thebittimes.com/images/2023/10/20/a864a70bab60f9d2e487b92059fed9ba.webp 1024w, https://cdn.thebittimes.com/images/2023/10/20/a864a70bab60f9d2e487b92059fed9ba.webp 300w, https://cdn.thebittimes.com/images/2023/10/20/a864a70bab60f9d2e487b92059fed9ba.webp 768w, https://cdn.thebittimes.com/images/2023/10/20/a864a70bab60f9d2e487b92059fed9ba.webp 380w, https://cdn.thebittimes.com/images/2023/10/20/a864a70bab60f9d2e487b92059fed9ba.webp 550w, https://cdn.thebittimes.com/images/2023/10/20/a864a70bab60f9d2e487b92059fed9ba.webp 800w, https://cdn.thebittimes.com/images/2023/10/20/a864a70bab60f9d2e487b92059fed9ba.webp 1040w" sizes="(max-width: 1024px) 100vw, 1024px">
  <figcaption class="wp-element-caption">
   Source: figtreecapitalventures.com
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 <p>The US dollar is the world’s primary reserve currency giving it a unique advantage in the global oil sector. The US dollar enjoys ‘exorbitant privilege’ in global transactions while other local currencies are not given the advantage.</p>
 <p><strong>Also Read: BRICS: Chinese Yuan Surpasses Euro, Becomes Second Main SWIFT Currency</strong></p>
 <p>If BRICS starts using their local currencies for transactions, it could decrease the demand for the US dollar and lead to its depreciation against other local currencies. This could impact the purchasing power of the US dollar and affect the terms of trade for oil transactions.</p>
 <p>BRICS asking the US and Europe to pay in local currencies for oil would have serious geopolitical implications. The world needs the US as it’s the top country that provides ample business and trading opportunities. Trade policies could be rewritten if BRICS asks the US and Europe to pay local currencies instead of the dollar.</p>
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 <p>In conclusion, it is unlikely that <a rel="noopener noreferrer nofollow" title="BRICS" href="https://thebittimes.com/tag/brics.html">BRICS</a> could demand the US and Europe to pay local currency for <a rel="noopener noreferrer nofollow" title="Oil" href="https://thebittimes.com/tag/oil.html">Oil</a>. The chances are that <a rel="noopener noreferrer nofollow" title="BRICS" href="https://thebittimes.com/tag/brics.html">BRICS</a> could lose bilateral trade deals with the West which could hamper their GDP and economy.</p>
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<div class="cs-entry__tags">
 <ul>
  <li>BRICS</li>
  <li>europe</li>
  <li>Oil</li>
  <li>US DOLLAR</li>
 </ul>
</div>
<p>Source: <a rel="noopener noreferrer nofollow" target="_blank" href="https://thebittimes.com/what-happens-if-brics-asks-us-europe-to-pay-local-currency-for-oil-tbt67144.html">https://thebittimes.com/what-happens-if-brics-asks-us-europe-to-pay-local-currency-for-oil-tbt67144.html</a></p>

What Happens If BRICS Asks US & Europe To Pay Local Currency For Oil?

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