BRICS Member India Abandons the US Dollar and Purchases One Billion Barrels of Oil Using Rupees for the Very First Time
Reportedly, India, one of the BRICS countries, has bought oil from the United Arab Emirates in Indian rupees.
There were rumors in July that India and the UAE had signed an agreement allowing India to use its own currency, the rupee, in trade with the UAE rather than the dollar.
Indian Oil paid in rupees for one million barrels of oil it bought from the state-owned Abu Dhabi National Oil Company last week, thus it seems that trade between the two countries has begun utilizing local currency.
India is not the only member of the BRICS to bypass the US currency when buying energy from the UAE. The United Arab Emirates apparently received payment in yuan from the China National Offshore Oil Corporation in March for the purchase of 65,000 tons of liquified natural gas.
In the meanwhile, China said in May that it has inked worldwide currency settlement agreements totaling $582.3 billion that would solely utilize the yuan. The United Arab Emirates (UAE), together with Russia, Venezuela, Oman, Bahrain, Qatar, Kuwait, and Saudi Arabia, signed an agreement with the Asian superpower.
China and India’s recent actions highlight the BRICS movement to phase out the US currency. Business leaders from Brazil, Russia, India, China, and South Africa have banded together to form a group known as BRICS.
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