In yet another blow to the United States’ economic hegemony and dollar dominance, the United Arab of Emirates recently announced that they will no longer be using U.S. dollars in oil trade, as the UAE is set to officially becomes the newest member of the BRICS bloc.
In August, the UAE was one the latest nations to be admitted to the bloc, including Ethiopia, Iran, Saudi Arabia, Egypt and Argentina, (though Argentina is set to leave BRICS after their newest president announced they would forsake the BRICS partnership).
The UAE will officially become an acting member on the first of 2024.
Watcher.Guru reported: ‘the Financial Times reports that a BRICS member country, the UAE, is seeking new oil deals that could have massive implications on the US dollar.’
Also, ‘the report notes that the UAE “planned to use meetings about the COP28 summit it is hosting later this week to pitch oil and gas deals to foreign governments,” according to sources. Additionally, it stated that the country is set to discuss potential deals with 15 countries, including China, Russia, and Egypt.’
Cryptopolitan also highlights just how significant this move is:
This change could potentially reshuffle the cards in the international oil trade, impacting the dollar’s stronghold and introducing a new era of currency dynamics in oil transactions.
The UAE’s proactive search for new oil trading partners is a testament to its agility and foresight in navigating the evolving economic landscape. The significance of this move cannot be overstated.
It’s not just a matter of switching currencies; it’s about altering the very fabric of international oil trade. The potential ripple effects on the US dollar could be substantial, marking a shift in the global economic power balance.
This shift, driven by the broader ambitions of the BRICS alliance, could have far-reaching implications for the dominance of the US dollar in international trade.
On top of this, the UAE has also announced that they will be implementing an additional voluntary cut of 163 thousand barrels oil per day, beginning on January 1st, 2024, and will last until the end of March, part of a collaboration with other OPEC+ nations…
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