BRICS Nations Shift: Oil Trade Settled in Local Currencies, Not US Dollar

The global economic landscape is shifting. BRICS members Brazil and China have officially agreed to settle cross-border payments in local currencies rather than the US dollar, signaling a move away from dollar dominance in international trade. Brazilian authorities support expanding this initiative.

This de-dollarization trend isn\'t limited to just Brazil and China. The BRICS alliance is advancing by putting local currencies at the forefront of global trade, not the US dollar. We\'re seeing a concerted effort to reduce reliance on the dollar and foster greater economic autonomy amongst participating nations.

Notably, oil trade is a key area of focus. 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 relationships and reduce its dependence on the US dollar. Furthermore, the newly joined members of the bloc, Saudi Arabia and the UAE are partnering with existing members India, China, and Russia to settle oil trade in local currencies.

Beyond the Middle East, BRICS members India and Indonesia have officially agreed to abandon the US dollar and settle cross-border transactions in local currencies. The decision to use local currencies streamlines transactions and reduces exchange rate risks.

This shift is part of a larger trend. After BRICS, a new alliance has kick-started the de-dollarization process and is using local currencies for trade and not the US dollar. The Commonwealth of Independent States (CIS) is also exploring similar mechanisms.

With Iran, Saudi Arabia and the United Arab Emirates joining BRICS, the multilateral mechanism now includes major global oil producers and importers. Analysts said this expanded membership strengthens the bloc\'s ability to challenge the existing financial order and promote alternative payment systems. The push for local currency settlement is 17 de sept. de 2025 [likely a reference error, but included as requested verbatim from the snippet] only expected to gain momentum.