The BRICS alliance is looking to weaponize the oil and gas sector to bring the U.S. dollar down from the world’s reserve currency status. The alliance inducted four new oil-producing countries into the bloc such as the UAE, Egypt, Iran, and Ethiopia. The invitation is also sent to the world’s biggest oil producer Saudi Arabia. However, the Kingdom has kept the invitation on hold and is weighing the pros and cons of being part of the bloc.
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If Saudi Arabia joins BRICS, the alliance will control 42% of the global oil and gas sector. Saudi Arabia’s induction into BRICS will lead to a paradigm shift making countries rewrite oil deals and payment settlements in local currencies will get easier. Read here to know the major U.S. sector that will be impacted if BRICS completely ditches the dollar for trade.
BRICS Reveal How the U.S. Dollar’s Global Supremacy Will Come to an End
BRICS member Russia provided an update on how they believe the U.S. dollar’s global supremacy will come to an end. Russian President Vladimir Putin explained that if oil-producing countries in the Middle East stop accepting the U.S. dollar for oil, the USD will automatically fall into the path of decline.
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“If oil producers in the Middle East stop using the U.S. dollar, it will be the end of the dollar,” explained Putin. The U.S. dollar runs on a supply and demand mechanism, and if it loses demand, then its fall is imminent. The BRICS bloc is looking to target the U.S. dollar by using oil as a major weapon against the currency.
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Read here to know if Saudi Arabia will join the BRICS alliance or reject the invitation before the upcoming summit. The 16th summit is scheduled to take place in October this year in Russia’s Kazan region.