BRICS India Makes First Local Currency Payment to UAE for Oil: A Game Changer

In an unprecedented move signaling a shift in global trade dynamics, India has successfully conducted its first-ever local currency payment to the United Arab Emirates (UAE) for oil. Specifically, BRICS nation India has made its first local currency payment to the UAE in a recently partnered oil deal. This landmark transaction, settled in rupees, marks a significant step towards de-dollarization and strengthened bilateral ties.

The first-ever oil transaction in local currency has taken place between Abu Dhabi National Oil Company (ADNOC) and Indian Oil Corporation Limited (IOCL) on Monday. This follows an agreement signed in July for rupee settlement, where India and the United Arab Emirates (UAE) have initiated bilateral trade settlements using their respective local currencies.

India and the United Arab Emirates have started settling bilateral trade in their local currencies with India's top refiner making payment in rupees for purchase of a million barrels of oil. The country's primary refiner, Indian Oil Corporation (IOC), made payments for purchase of a million barrels of crude oil.

India, the world's third-largest energy consumer, made its first-ever payment in rupees for crude oil purchased from the United Arab Emirates (UAE), signalling what could be a new era of trade relations. This achievement is a testament to the deepening economic cooperation between the two nations and the growing influence of the BRICS alliance. India Conducts First-Ever Local Currency Payment to UAE in Oil Trade.

This groundbreaking development not only reduces reliance on the US dollar but also strengthens the economic sovereignty of both India and the UAE. The transaction was settled in rupees and was part of a larger effort to promote the use of local currencies in international trade. The implications for the global financial landscape and the future of BRICS nations are significant.