Saudi Arabia, the UAE, Kuwait, Iran, and Iraq, are among the top 10 most oil-producing countries in the world. The BRICS alliance is convincing oil-rich Middle Eastern nations to accept the new currency and end reliance on the U.S. dollar.
If oil-producing countries accept the soon-to-be-released BRICS currency as payment, the U.S. dollar could be on the brink of collapse. Ahead of the next BRICS summit in August, Iraq is taking steps toward becoming the world’s biggest producer of oil.
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BRICS: Iraq Takes Steps Towards Becoming the World’s Top Oil Producer
Iraq’s parliamentary oil and gas committee aims to increase oil production to more than five million barrels per day. The move could lift Iraq’s oil production to 13 million barrels per day. Saudi Arabia currently produces 12.4 million barrels of oil each day importing it to the U.S., Europe, and other Asian and African countries.
According to the committee, Iraq aims triple its oil production and reach 13 million barrels of oil every day. If handled as planned, Iraq could become the biggest producer of oil in the world overtaking Saudi Arabia by a slim margin.
The development could boost Iraq’s economy and push it on the path to financial recovery. This could give Iraq an upper hand and draw other nations towards it for oil consumption and renewal of global trade.
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The move comes on the heels of the next BRICS summit which will be held in South Africa next month. Iraq expressed its interest to join BRICS and accept the new currency for international transactions. If Iraq gains entry into the group and becomes the biggest oil producer, it could force other countries to settle payment in the new BRICS currency.
The U.S. dollar could be the hardest hit if all cards favor Saudi Arabia, Iraq, and the BRICS currency. Iraq had also banned the trade of U.S. dollars in foreign exchange markets to bolster the usage of the Iraqi Dinar.
Read here to know why Iraq banned the U.S. dollar just two months before the BRICS summit. The BRICS alliance aims to create a new BRICS currency to challenge the U.S. dollar as the global reserve currency.