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If Saudi Arabia and the UAE make local currencies the only way to procure oil and gas, the move will realign the financial world as we know it. The Western dominance could be upended, tilting With the rise of BRICS it made me wonder what does it mean that countries may ask to pay for their oil in local currency instead of dollars. How does it all exactly work and who benefits from Amid the recent BRICS expansion and the bloc’s de-dollarization approach, the US and Europe may soon require local currencies in order to buy oil. Indeed, the past The United Arab Emirates (UAE) is asking BRICS countries to settle oil trade in local currencies and not the U.S. dollar. The Middle Eastern nation is aiming to diversify its economic BRICS recently inducted 6 new member countries, 5 of which are major oil exporters. Saudi Arabia is open to accepting local currencies for oil trade. If BRICS uses local currencies 17 de sept. de 2025 The BRICS alliance is advancing by putting local currencies at the forefront of global trade, not the US dollar. The newly joined members of the bloc, Saudi Arabia and the In this article, we will highlight what might happen if BRICS demands the US, Europe, and other Western allies to sideline the dollar and pay in local currencies for oil. In this article, we will highlight what might happen if BRICS demands the US, Europe, and other Western allies to sideline the dollar and pay in local currencies for oil. The US and Europe could be headed for such a situation if BRICS puts ‘payments in local currencies only’ for oil and gas settlements. Until today, the world needed

US & Europe to Pay Local Currencies for Oil After BRICS Expansion? What You Need to Know

The global energy landscape is shifting. Following the recent BRICS expansion and the bloc’s increasing focus on de-dollarization, whispers are growing louder: will the US and Europe soon be required to pay for oil in local currencies?

BRICS Expansion Fuels De-Dollarization Push

BRICS recently inducted 6 new member countries, 5 of which are major oil exporters. This expansion strengthens the bloc's ambition to move away from the US dollar in international trade. The BRICS alliance is advancing by putting local currencies at the forefront of global trade, not the US dollar. Saudi Arabia, a key player in the oil market, is reportedly open to accepting local currencies for oil trade.

UAE Leading the Charge: Local Currencies for Oil?

The United Arab Emirates (UAE) is actively encouraging BRICS countries to settle oil trade in local currencies and not the U.S. dollar. The Middle Eastern nation is aiming to diversify its economic relationships and reduce reliance on the dollar.

The Implications: How Would it Work?

With the rise of BRICS it made me wonder what does it mean that countries may ask to pay for their oil in local currency instead of dollars. How does it all exactly work and who benefits from this potential shift? If BRICS demands the US, Europe, and other Western allies to sideline the dollar and pay in local currencies for oil, several scenarios could unfold.

The process would involve:

  • Currency Exchange: US and European countries would need to exchange their currencies (USD, EUR, etc.) for the local currency of the oil-exporting nation (e.g., Yuan, Ruble, Real, etc.).
  • Direct Trade Agreements: Bilateral agreements would likely be established to facilitate the exchange and payment process.
  • Increased Demand for Local Currencies: Demand for these local currencies would surge, potentially impacting their value on the global market.

Who Benefits from Local Currency Oil Payments?

The potential benefits are multifaceted:

  • BRICS Nations: Increased economic influence, reduced reliance on the US dollar, and potentially stronger local currencies.
  • Oil-Exporting Countries: Greater control over their finances and trade relationships.
  • Countries Seeking to Reduce Dollar Dependence: A pathway to diversifying their financial systems.

The Potential Impact on the US and Europe

If Saudi Arabia and the UAE make local currencies the only way to procure oil and gas, the move will realign the financial world as we know it. The Western dominance could be upended, tilting. The US and Europe could be headed for such a situation if BRICS puts ‘payments in local currencies only’ for oil and gas settlements. Until today, the world needed to operate within the dollar-dominated financial system.

Specifically, If BRICS uses local currencies, In this article, we will highlight what might happen if BRICS demands the US, Europe, and other Western allies to sideline the dollar and pay in local currencies for oil.

The consequences could include:

  • Weakened Dollar: Reduced global demand for the US dollar could impact its value.
  • Increased Transaction Costs: Exchanging currencies can add transaction costs for businesses and governments.
  • Geopolitical Shifts: A decline in dollar dominance could lead to a shift in global power dynamics.

Is This the Future?

Amid the recent BRICS expansion and the bloc’s de-dollarization approach, the US and Europe may soon require local currencies in order to buy oil. Indeed, the past points towards an increasing trend of countries exploring alternatives to the US dollar. While the full impact remains to be seen, the shift towards local currency payments for oil represents a significant development in the global financial landscape. 17 de sept. de 2025 will be a date to watch.

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