BRICS: China & India Ditch US Dollar For Oil, Save $17 Billion

Vinod Dsouza
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Source: TimesNow

BRICS countries China, India, Saudi Arabia, and the UAE are benefiting immensely from the US economic sanctions pressed against Russia. The BRICS members China and India are buying laundered oil at cheaper rates from Russia by ditching the US dollar. Both countries are settling trade in their respective local currencies and saving billions in exchange rates for oil procurement. Read here to know how many sectors in the US will be impacted if BRICS stops using the US dollar.

Also Read: Iraq Ready To Join BRICS After Banning Cash Withdrawals in US Dollar

BRICS: India & China Save $17 Billion By Not Using the US Dollar For Oil Trade

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China saved $10 billion by ditching the US dollar for oil trade and using the Chinese Yuan for settlements with Russia. On the other hand, India saved $7 billion by purchasing oil at discounted prices from Russia since February 2022. India has purchased $186.45 billion worth of crude oil from Russian suppliers through laundered oil from China.

Also Read: BRICS: Malaysia Announces To Eliminate the US Dollar For Global Trade

In addition, Saudi Arabia is purchasing crude oil at lesser rates from Russia and is laundering it all over Europe. Saudi Arabia also confirmed that the Kingdom is open to accepting local currencies for oil instead of the US dollar. The move adds pressure on the USD as the currency is being less used in the international markets.

Therefore, BRICS country Russia is evading sanctions by selling oil and accepting local currencies instead of the US dollar. In conclusion, India and China have combinedly saved $17 billion by ending reliance on the US dollar for oil purchases.

Also Read: BRICS to Completely Ditch the US Dollar in 3 Years

Moreover, India initiated an oil deal with the UAE by paying the Rupee to procure millions of oil barrels and not the US dollar. The BRICS countries are saving billions by ending reliance on the greenback for cross-border transactions. The development puts the US dollar on the back foot as the local currencies are now taking center stage.