BRICS: India & UAE Continue Ditching USD in Landmark Oil Deal

Joshua Ramos
Source: Reuters

Following the BRICS bloc’s six-country expansion, India and the United Arab Emirates (UAE) have continued ditching the US dollar in a landmark deal. Specifically, the countries agreed on a 1 million barrel oil deal that was completely in Indian rupees.

Moreover, the transactions followed another massive sale between the two countries. Specifically, 25kg of gold was exported from the UAE to India for 128.4 million rupees, according to Reuters. That deal was worth a monumental $1.54 million.

brics india bharat prime minister narendra modi g20 summit
Source: AFP

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BRICS Countries Continue De-Dollarization Efforts

The BRICS countries have sought to continue their de-dollarization efforts. Following its six-country growth initiative, the alliance has continued to push for the promotion of local currencies. Now, the BRICS countries of India and the UAE have made good on that hope with another landmark oil deal.

Specifically, MoneyWise reports that the two countries agreed on a massive oil transaction worth more than a million barrels. Moreover, this agreement, which took place in August, was completely in the local rupee. Indeed, the petroleum refiner, Indian Oil Corp., bought the oil from Abu Dhabi National Oil Company, not the United States.

Source: Modern Diplomacy

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This transaction followed more than 120 million rupees spent on other transactions between the countries. Particularly, both nations agree on a trade for gold, which has long been connected to the developing BRICS currency. The alternative currency has long been discussed as a US dollar alternative, specifically for international trade.

India’s central bank has reportedly developed a new global trade framework. Indeed, this would allow the country’s trade dealings to be done in rupees as opposed to the US dollar. The development aligns with the growing desire for the global south to continually separate itself from Western influence. Specifically, through the abandonment of its currency as a global reserve mainstay.