On Wednesday, Reuters reported that Western sanctions against Russia and oil trade between Moscow and India are beginning to erode the decades-long dominance of the dollar in international oil trade. Oil deals between India and Russia are being settled in other currencies, putting pressure on the dominance of the U.S. dollar in oil trading.
Non-U.S. currencies used in oil transactions between India and Russia total “hundreds of millions of dollars,” sources said
In recent months, Bitcoin.com News has reported on several instances in which analysts and economists have suggested that Brazil, Russia, India, China, and South Africa, collectively known as the BRICS nations, are trying to undermine the U.S. dollar. on March 8, Reuters columnists Nidhi Verma and Noah Browningreported that oil deals with India and Russia have “dented”the dominance of the US dollar in international oil trading.
Oil traders and bankers told reporters that Indian customers are paying for Russian oil in full in non-U.S. fiat currencies, including United Arab Emirates (UAE) dirhams. Over the past three months, the transactions have accounted for “hundreds of millions of dollars” in transactions between the two countries, according to the sources. Three sources with direct knowledge of the matter chose to remain anonymous because of the “sensitivity of the issue.”
This is not the first time thataccounts and sourceshave noted that India is reportedly obtaining oil fromRussia at a significant discountThe estimated price ceiling of $60 per barrel was reported on various occasions last year. The $60/barrel price ceiling had been reported on various occasions in the past year. There have also beenclaimsthat large amounts of oil are simply being returned
to European gas stations after India allegedly sold oil at a premium.
Daniel Ahern, former chief economist for the U.S. State Department, told Reuters on Wednesday that the dollar’s “strength is unmatched.” Arnn called the Russian Federation’s move a “transitory gain” that is not expected to have a significant effect.” Ahn said in a statement that “Russia’s short-term efforts to sell goods in exchange for currencies other than the dollar are not a real threat to Western sanctions.
How do you think India and Russia settling oil transactions in non-U.S. currencies would affect global oil trade and the dominance of the U.S. dollar in it? Share your thoughts on this subject in the comments section below.
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