BRICS Urges Middle East to Ditch US Dollar for Oil Trade: Dollar's Dominance Under Threat?

The geopolitical landscape is shifting, and the implications for the US dollar are significant. BRICS is calling on oil producers to ditch the dollar, and the strategy is starting to bear fruit. BRICS aims to topple the US dollar by making oil-exporting countries accept local currencies for oil and gas cross-border payments. This move, spearheaded by key members like Russia, aims to challenge the dollar's long-held dominance in the global oil trade. The dollar’s share of global reserves is shrinking at a rate ten times faster, signalling a potential paradigm shift.

BRICS member Russia is urging countries in the Middle East to stop accepting the US dollar for oil payments. Russian President Vladimir Putin is hitting out at the current reliance on the dollar, advocating for increased use of local currencies in international transactions. This initiative is gaining traction as nations seek to diversify their financial strategies and reduce dependence on the US economy.

Putin's Push for De-Dollarization: A BRICS Strategy

In a recent move that should have every dollar holder paying attention, Vladimir Putin, during Russia’s turn to lead the BRICS group in 2025, threw a spotlight on how BRICS aims to topple the US dollar by making oil-exporting countries accept local currencies for oil and gas cross-border payments. This bold strategy seeks to reshape the global financial order and empower emerging economies.

Saudi Arabia's Potential Role

The potential inclusion of Saudi Arabia within the BRICS alliance is a game-changer. If Saudi Arabia joins the bloc, the grouping will be stronger. This addition would significantly amplify BRICS' influence in the energy market and further accelerate the move away from the US dollar in oil transactions. The implications for the dollar's future as the world's reserve currency are profound.

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