UAE Seeks to Settle Oil Trades in Local Currencies, Joining BRICS Countries in De-Dollarization Efforts
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The UAE is looking to settle oil payments with 15 countries in local currencies instead of US dollars. This includes BRICS members China, India, Russia, and Egypt.
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Settling oil trades in local currencies lays the foundation for de-dollarization initiatives among developing countries. India and the UAE already settled some oil trades in Rupees rather than dollars.
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Saudi Arabia has also confirmed it is open to accepting local currencies for oil instead of dollars. This threatens the dominance of the US dollar in the vital oil sector.
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BRICS countries aim to uproot the dollar's dominance in oil and replace it with their own local currencies.
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These de-dollarization efforts could put the US economy in jeopardy by making it harder to fund deficits. The fate of the dollar in global currency markets could be decided in the next few years.