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India, a BRICS Member, Buys 1 Million Barrels of Oil Using Rupees Instead of US Dollar: Report

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India BRICS Member, a BRICS Nation, Makes Historic Oil Purchase from UAE Using National Currency

Reports indicate that India, a member of BRICS, has achieved a significant milestone by buying oil from the United Arab Emirates using its own currency. In a July development, it was revealed that India and the UAE had entered an agreement enabling the use of Indian rupees instead of the US dollar for trade between the two nations.

Shift from Dollar: Indian Oil Initiates Rupee Payments for UAE Oil Trade

In a recent development, it seems that the two countries have commenced trading using their respective domestic currencies. Energy giant Indian Oil made payments in rupees to procure one million barrels of oil from the state-owned Abu Dhabi National Oil Company, according to a Reuters report.

India is not alone among BRICS nations in opting to buy energy from the UAE while bypassing the use of the US dollar.

BRICS Nations’ Strategic Shift: Moving Away from US Dollar

In March, an important shift was observed in the energy trade landscape as the China National Offshore Oil Corporation (CNOOC) made a significant transaction. The oil and gas giant successfully executed a deal where they used the yuan, China’s national currency, to pay for the import of 65,000 tons of liquefied natural gas from the United Arab Emirates (UAE).

In a parallel development, China, in May, made a substantial announcement that highlighted its growing economic influence. The country unveiled agreements totaling a staggering $582.3 billion for global currency settlements, all exclusively denominated in yuan. This move has far-reaching implications, and among the countries entering into these agreements. The UAE stood out, aligning itself with this strategy. Noteworthy nations like Russia, Venezuela, Oman, Bahrain, Qatar, Kuwait, and Saudi Arabia also joined this endeavor. Marking a shift towards enhanced utilization of the yuan.

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BRICS Nations Unite to Diversify Away from US Dollar Dependency

These recent actions by both China and India, each a prominent member of the BRICS economic alliance. Signal a concerted effort within this group to move away from reliance on the US dollar. This deliberate shift away from the dollar highlights the BRICS nations’ aspirations for greater financial autonomy. And a reduction of external currency dependencies. The term “BRICS” encompasses five major emerging economies – Brazil, Russia, India, China, and South Africa. This collective alliance aims to foster cooperation and collaboration across economic, political, and cultural spheres. One of the notable consequences of this alliance has been a joint determination to recalibrate global financial dynamics. By diversifying away from the traditionally dominant US dollar.

BRICS Shaping Multipolar World Through Currency Diversification

As these developments unfold, it’s becoming increasingly clear that BRICS is playing a pivotal role. In shaping a multipolar world where various currencies can assume more equitable roles on the global stage. The strategic steps taken by China and India are more than just economic maneuvers. They are statements of intent in the pursuit of a more balanced and inclusive international economic landscape.

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