Following the landmark BRICS expansion, India has ditched the US dollar in what is a historic oil deal with the United Arab Emirates (UAE). In fact, India has purchased 1 million barrels of oil in rupees from the UAE, marking another significant step in the economic alliance’s de-dollarization efforts.
The UAE became a member of the bloc following last week’s 2023 summit. Specifically, it joined Saudi Arabia, Iran, Argentina, Ethiopia, and Egypt as the newest members of the expanded alliance. Now, the historic deal marks a notable trade between the two member states.
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India and the UAE Agree on Landmark Oil Deal Settled in Rupees
The 2023 BRICS summit was set to be one of the bloc’s most important moments. Months of talk regarding expansion and economic policy preceded the event, with both ideas coming to fruition in varying degrees. Now, the fruits of those conversations have already come to fruition a week away from the event.
Following the BRICS expansion, India has once again ditched the US dollar in a historic oil deal with the UAE. Specifically, Yahoo reported that India has purchased 1 million barrels of oil for rupees instead of US dollars. This marks the first time that an oil deal between the two countries has been settled in a currency other than the greenback.
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The move away from the US dollar has always been a key aspect of the bloc’s growth plan. Subsequently, the presence of an expanded economic alliance provides a key opportunity to make good on those hopes. Moreover, with 90% of oil sales settled in US dollars, it is understandable to expect this sale to begin a trend.
Saudi Arabia, a key trader of oil globally, should present a very important aspect of this equation. Especially considering that the United States had recently urged the country to continue settling in the greenback. Conversely, its inclusion in the BRICS will likely lead to action similar to that of India and the UAE.