LUCKNOW (CoinChapter.com) — With the highly anticipated BRICS summit just around the corner, India has taken a significant step towards de-dollarization by making its first crude oil payment to the United Arab Emirates (UAE) in rupees. This landmark move underscores the growing trend of nations moving away from the traditional US dollar in trade agreements.
Furthermore, the Indian Embassy in the UAE confirmed that the payment was made to the Dhabi National Oil Company, marking a milestone in their economic partnership.
India is bolstering economic collaboration within BRICS. The nation strategically aims to enhance its financial sovereignty. Distancing from the US dollar gains momentum. India achieves its first oil payment success to the UAE in rupees. This accomplishment is significant before the impending BRICS summit.
De-Dollarization Gains Momentum in BRICS
The recent agreement between the two nations enables trade settlements in rupees, eliminating the need for dollar conversions. This decision not only streamlines transactions but also reduces associated costs. The move reflects a deliberate effort to minimize reliance on the US dollar and establish stronger bilateral economic ties.
The significance of excluding the US dollar from oil transactions becomes particularly prominent in light of BRICS’ burgeoning engagement in the oil trade.
Bilateral trade between India and the UAE soared to $84.5 billion from 2022 to 2023. This bolsters the drive to adopt alternative currencies. Moreover, the prospect of countries like Saudi Arabia and Venezuela participating in BRICS could further diminish dependence on the US dollar.
BRICS Summit on the Horizon
As the BRICS summit approaches, all eyes are on the member nations. They are navigating the changing landscape of global trade. India’s historic oil payment to the UAE is a testament to its commitment to financial autonomy and regional collaboration.
With a paradigm shift towards local currency settlements, the foundation for a more diversified and resilient economic ecosystem within the BRICS alliance is taking shape.
