BRICS member India has made its first-ever oil purchase from the United Arab Emirates using its national currency, the rupee. This follows an agreement between the two countries that allows India to trade with the UAE in rupees instead of the US dollar. Last week, Indian Oil, an energy company, made payments in rupees to purchase one million barrels of oil from the state-owned Abu Dhabi National Oil Company. India joins China as a BRICS nation that has purchased energy from the UAE without using the US dollar. China previously paid in yuan to import liquified natural gas from the UAE and has signed global currency settlement agreements that exclusively use the yuan. These moves highlight BRICS’ efforts to move away from the US dollar.
Key Points:
– India has purchased oil from the UAE using rupees for the first time, following an agreement between the two countries.
– Indian Oil made payments in rupees to buy one million barrels of oil from Abu Dhabi National Oil Company.
– China has also purchased energy from the UAE using yuan and has signed global currency settlement agreements exclusively using the yuan.
– These moves demonstrate BRICS’ efforts to reduce reliance on the US dollar.
Hot Take:
The shift by India and China to purchase energy from the UAE in their local currencies is a significant step in the BRICS alliance’s efforts to reduce dependence on the US dollar. As major economies, India and China’s actions could inspire other countries to follow suit, potentially weakening the dollar’s global dominance. This move aligns with the broader trend of countries seeking alternatives to the US dollar in international trade, which could have far-reaching implications for the global financial system.
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