BRICS Expansion and Push for Local Currencies Could Challenge Dollar Dominance, But Unlikely to Damage Key Trade Ties

BRICS recently inducted 6 new member countries, 5 of which are major oil exporters. Saudi Arabia is open to accepting local currencies for oil trade.

If BRICS uses local currencies instead of US dollar, it could decrease demand for dollar and lead to its depreciation.

BRICS demanding payment in local currencies would have serious geopolitical implications as it challenges dollar's status.

It could impact US dollar's purchasing power and affect terms of trade for oil transactions if implemented.

However, it is unlikely BRICS would make this demand, as doing so could risk valuable trade relationships with US and Europe.