Oil Transactions Without Dollars, India Gets Rp108 Trillion Discount

US Treasury Secretary Janet Yellen has openly admitted that sanctions only help local currencies and hurt the dollar. She said that sanctions are what prompted the BRICS alliance to consider dedollarizing by using local currencies for cross-border transactions.

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China has already succeeded in its efforts, as the yuan has overtaken the US dollar as the most traded currency in Russia. Xi Jinping’s government is leaving no stone unturned in convincing Russia to accept the yuan for all trade payments.

Most developing countries now pay in Chinese yuan and Russian rubles for transactions with the country. Russia fully started accepting Chinese yuan for payments after the US imposed sanctions on its economy in February 2022.

Several other emerging economies, including BRICS partners India and Brazil, settle trades in Chinese yuan for crude oil. India even saved $7 billion in currency exchange by using yuan instead of US dollars to buy oil at a discount.

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According to Watcher Guru, the Yuan accounted for 42% of all international transactions conducted in Russia between 2023 and 2024. The US dollar accounted for 39.5% of all cross-border settlements conducted by BRICS member Russia during the same period.

The US dollar has fallen by 2.5% making the Yuan the most widely used currency in Russia in 2023-2024.

Both BRICS members China and Russia are spearheading the dedollarization agenda across the globe. Developing countries find the prospect lucrative as the initiative strengthens local currencies which gives a boost to their native economies.

(nng)