Following the BRICS de-dollarization efforts, Russian President Vladimir Putin has said that the Middle East oil sector has the power to end the US dollar. Indeed, Putin recently said that the oil producers could end the US dollar by refusing to accept it.
Russia is currently serving its chairmanship role for the economic alliance in 2024. Thus far, its presidency has been defined by its continued effort to diminish the prevalence of the greenback on an international scale. In Putin’s words, Middle Eastern oil producers could play a vital role in the endeavor.
Also Read: BRICS Continues Development of its Currency & Payment System
BRICS Assures Middle East Oil Producers Are Crucial in De-Dollarization
Throughout the last year, the BRICS economic alliance has experienced a meteoric rise in the geopolitical landscape. Following Western sanctions imposed on Russia in 2022 following its invasion of Ukraine. Since then, the alliance has sought to increase its global standing and diminish Western dominance within international economics.
Now, the collective has spoken on one major way that can be done. Specifically, the BRICS 2024 presidency holder, Russia, has said that the Middle East oil sector has the power to end the US dollar. Indeed, Russia’s President, Vladimir Putin discussed the impact that the region would have on the greenback’s global relevance.
Also Read: US Dollar-Dominated World Will End Soon, Says BRICS Ambassador
“If oil-producing countries in the Middle East stop accepting payments in Dollars, it will mark the end of the US dollar” Putin stated. The statement informs the bloc’s perspective, and why Suadi Arabia and the United Arab Emirates (UAE) were so crucial to its initial expansion efforts.
These countries provide the clear benefit of Putin’s statements. They are some of the most prominent toil producers in the region and could work alongside the bloc’s de-dollarizaiton plans. Already, the expanded bloc has worked to integrate increased local currency payments for oil settlements.
However, that may soon change all the more, as the bloc is hard at work developing its currency. Russia has announced its decision to take legislative action to allow digital assets to be used in international settlements. As the alliance works to create its digital payment system, it could transition from US dollar settlements to BRICS currency settlements. Thereby lessening the greenback’s value, and increasing its importance on the global stage.