UAE officiallly stops using using dollar for oil trades

[screwball]

https://www.msn.com/en-us/money/markets/uae-officially-stops-using-dollar-for-oil-trades/ar-AA1kCMxH

 

The changeover, involving the transition to local currencies for oil transactions, marks a significant departure from the long-established dollar dominance in the global oil market.

The BRICS Influence and UAE’s Strategic Shift

The BRICS bloc, comprising Brazil, Russia, India, China, and South Africa, recently expanded its membership to include the UAE, along with Saudi Arabia, Egypt, Ethiopia, Iran, and Argentina.

This expansion signifies a growing inclination towards de-dollarization among these nations, a move that challenges the traditional hegemony of the US dollar in international trade.

The UAE’s decision to prioritize local currency over the US dollar in new oil deals is a clear reflection of this sentiment. This move isn’t just a mere policy shift; it’s a strategic maneuver in the complex chess game of global economics.

By aligning with the BRICS nations, the UAE is not only diversifying its economic partnerships but also reinforcing its position as a global oil powerhouse.

 

This change could potentially reshuffle the cards in the international oil trade, impacting the dollar’s stronghold and introducing a new era of currency dynamics in oil transactions.

A New Era in Global Oil Trade

The UAE’s proactive search for new oil trading partners is a testament to its agility and foresight in navigating the evolving economic landscape. The significance of this move cannot be overstated.

It’s not just a matter of switching currencies; it’s about altering the very fabric of international oil trade. The potential ripple effects on the US dollar could be substantial, marking a shift in the global economic power balance.

Reports indicate that the UAE is eyeing potential oil and gas deals with up to 15 countries, including heavyweights like China, Russia, and Egypt, all of whom are members of the BRICS alliance and advocates of de-dollarization.

This isn’t just about diversifying trade; it’s about making a statement on the global stage. The UAE is not just following a trend – it’s setting one.

 

The move by the UAE to embrace local currencies in oil trades is not an isolated event. It’s part of a larger narrative where nations are increasingly questioning the status quo and exploring alternatives that better serve their economic interests.

This trend towards de-dollarization, particularly in crucial sectors like oil, could herald a new chapter in global economics, one where diversity in currency use in trade becomes the norm rather than the exception.

Bottomline is the UAE’s decision to transition from the US dollar to local currencies in its oil trades is a bold and strategic move that reflects the changing dynamics of the global economic landscape.

This shift, driven by the broader ambitions of the BRICS alliance, could have far-reaching implications for the dominance of the US dollar in international trade.

As the UAE forges new partnerships and navigates this evolving terrain, it positions itself not just as a key player in the oil market, but also as a trailblazer in the movement towards a more diversified and dynamic global economy.

 

in this article they said it couldnt be done back from 2019

 

https://www.reuters.com/article/us-opec-emirates-idUSKCN1RK0OZ/

 

 

[gregp]

It starts. Here we go!

Thanks SB

[RJG]

 

[RJG]

BRICS: UAE Ditches U.S. Dollar for Oil Trade

Vinod Dsouza

December 1, 2023

Source: sheikhmohammed.ae

The United Arab Emirates (UAE) is asking BRICS countries to settle oil trade in local currencies and not the U.S. dollar. The Middle Eastern nation is aiming to diversify its economic partnerships by renewing payment methods for oil trade deals. The UAE is approaching China, Russia, India, and Egypt, among other nations to pay local currencies for oil settlement and sideline the U.S. dollar. Read here to know how many sectors in the U.S. will be affected if BRICS stops using the dollar.

Also Read: BRICS: U.S. Dollar Dips Against Local Currencies

According to reports, the UAE is in talks with 15 countries and is promoting local currency payments ending reliance on the U.S. dollar. The realigning of bilateral strategic partnerships could lead to a paradigm shift in the financial approach of BRICS countries. Controlling the global oil sector by ending reliance on the U.S. dollar could make BRICS turn into an economic powerhouse.

 

[RJG]

10 U.S. Sectors To Be Affected If BRICS Stops Using the Dollar

Vinod Dsouza

October 4, 2023

Source: realmoney.thestreet.com

The BRICS summit ended on a high note in August after the bloc inducted six new countries into the group. Leading oil-producing nations Saudi Arabia, the UAE, Egypt, Iran, and Ethiopia will join the alliance in January 2024. Also, Argentina is the only new BRICS member that does not produce and export oil. The one common thing between the 11-member BRICS group is their disdain for the U.S. dollar. Moreover, BRICS is looking to end dependency on the U.S. dollar by promoting their local currencies for cross-border transactions.

Also Read: South African President Makes Huge Announcement on BRICS Expansion

In this article, we will highlight the 10 American sectors that could be severely affected if BRICS stops using the U.S. dollar for trade. The American economy could be significantly impacted if other local currencies grow stronger in the international markets.

 

BRICS: 10 U.S. Sectors To Be Impacted If Dollar is Ditched As Payment

Source: energyintel.com / rustamxakim/ Shutterstock

A total of 10 financial sectors in the U.S. will be affected if BRICS uses local currencies and not the U.S. dollar. The sectors include banking, trade, forex, and tourism, among others. The U.S. financial sectors that could be affected if BRICS ditch the U.S. dollar are:

Also Read: BRICS: Former Treasury Secretary Predicts Future of the US Dollar

 

1. Global Financial System
2. Banking and Finance
3. Energy and Commodity Markets
4. International Trade and Investment
5. Capital Markets
6. Consumer Goods and Retail
7. Production and Consumption
8. Technology and Fintech
9. Government and Policy
10. Travel and Tourism

Also Read: The U.S. Dollar Overtakes All BRICS Currencies & Gold

Moreover, all the 10 sectors are closely linked to the U.S. economy and could have complications if the dollar loses demand. The banking sector could take the first hit that might eventually spill over to the markets.

Once the financial markets are hit, the domino effect could roll over to all sectors leading to a financial catastrophe. In conclusion, if the U.S. fails to fund its deficit, prices of all commodities could skyrocket or even reach hyperinflation.

 

 

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