BRICS Oil Producer Ditches US Dollar: A New Era of Local Currency Trade?

The global financial landscape is shifting, with a significant development in the BRICS alliance. As reported, a major oil exporter has taken the bold step to ditch the US dollar and switch to accepting local currencies for cross-border transactions. This is the first oil-producing firm to completely switch.

BRICS & the Rise of Alternative Currencies

With Iran, Saudi Arabia, and the United Arab Emirates joining BRICS, the multilateral mechanism now includes major global oil producers and importers. This expansion fuels the potential for increased trade using local currencies, bypassing the traditional dominance of the US dollar.

Analysts said BRICS: Russia\'s third-biggest oil exporter has stopped accepting the US dollar for trade and will accept local currency Yuan and Rubles. This move highlights the growing trend of de-dollarization within the BRICS nations.

The Implications of Abandoning the US Dollar

The move away from the US dollar is not without its potential challenges and ramifications. U.S. President-elect Donald Trump has warned the BRICS countries that if they attempt to replace the “mighty U.S. dollar” they would face “100 percent tariffs."

Furthermore, should India and Indonesia, two key members of the BRICS alliance, have officially agreed to abandon the US dollar for cross-border transactions, opting instead to settle trade in their respective currencies, the impact on global trade dynamics could be profound.

Looking Ahead: The Future of Global Trade

The decision by this oil exporter to embrace local currencies for trade, coupled with the broader BRICS push for de-dollarization, signals a potential shift in the global financial order. 26 de sept. de 2025 The oil exporter has ditched the US dollar and switched to accepting local currencies for cross-border transactions. While the long-term consequences remain to be seen, this development is undoubtedly one to watch closely.