BRICS: What Happens if Saudi Arabia Ditches US Dollar for Oil?

Saudi Arabia’s induction into the BRICS alliance threatens the US dollar’s prospects as the de-facto currency for oil payments. Mohammed Al-Jadaan, Saudi Arabia’s Finance Minister announced a week before the 15th BRICS summit in August that the Kingdom was considering dropping the US dollar for international oil trade. The statement ruffled a lot of feathers in the US and the Western world but was welcomed by developing countries.

Also Read: BRICS: Argentina Ditches US Dollar For IMF Payment, Pays Chinese Yuan

Oil is Saudi Arabia’s primary and most valuable natural resource. The Kingdom exports millions of barrels of Oil every year to both developing and developed countries in the West. Al-Jadaan’s comments indicate that Saudi Arabia might someday accept all local currencies for Oil payments and not the US dollar.

The move comes straight from the BRICS playbook as the alliance is looking to bring the US dollar down by controlling the Oil sector, which is helmed by Saudi Arabia. In this article, we will highlight how the US dollar will be affected if Saudi Arabia & BRICS ditch the USD for Oil trade.

Also Read: BRICS: African Countries to Ditch U.S. Dollar & Embrace New Currency?

BRICS: What Will Happen If Saudi Arabia Accepts Local Currencies & Not US Dollar For Oil?

Extended BRICS Saudi Arabia Oil Gas Commodity GDP
Source: oilandgasmiddleeast.com / ShutterStock

Trillions worth of US dollars will come back to America if Saudi Arabia ditches the US dollar for oil trade. If Saudi Arabia drops the US dollar for oil, many other countries will follow suit and sell their treasury bonds. All countries offloading US treasury bonds to buy oil from Saudi Arabia will begin to settle trade in local currencies.

Also Read: BRICS Global Trade Rises 56%, Reach $422 Billion

The development will strengthen the BRICS local currencies and their native economies going forward. If trillions of US dollars are sold, inflation will begin to spiral in America. The US will find it hard to fund its deficit and the situation might also lead to hyperinflation. Read here to know how many sectors in the US will be affected if BRICS completely stops using the dollar.

  • BRICS
  • Oil
  • Saudi Arabia
  • US DOLLAR

Comments

Post a Comment

Popular posts from this blog

Crypto News: Binance Adds Support For Bitcoin Ordinals

Image
Binance embraces Bitcoin NFTs The integration of Bitcoin NFTs into Binance ’s marketplace is expected to bring a surge of excitement to the already-thriving NFT space. Users will now be able to execute Bitcoin NFT transactions directly from their Binance accounts, streamlining the process and offering greater convenience. This development could mark a significant milestone in the world of NFTs, as the integration of Bitcoin NFTs allows users to utilize their Binance accounts for a wider range of transactions, beyond traditional cryptocurrencies. advertisement Read More: US SEC Sues Coinbase Exchange Following Binance Lawsuit Ordinals, introduced in Janurary of this year, have lately become the talk of the town. The Ordinals protocol has given Bitcoin an additional layer of utility where users can now use the token for more than just a store of value. The current lineup of supported Bitcoin NFTs on Binance ’s marketplace is extensive, featuring popu
Read more

Ethereum: A $1000 Investment in ETH Turns $2.5 Million in April 2023

Image
Vitalik Buterin published a white paper in 2014 and Ether made its debut in the indices in 2015. ETH ballooned to become the world’s largest altcoin cryptocurrency only second to Bitcoin in market cap. During its launch, ETH was trading at $0.42 but quickly jumped to $0.74 before investors got wind of the asset. The relatively new crypto was affordable giving investors ample time and opportunity to accumulate it every month in 2015. However, things turned when it crossed the $2 mark in January 2016 and skyrocketed in price thereafter. Early entrants made millions with ETH by buying low and selling high. The late entrants brought the crypto at a premium price with less quantity as it went north sharply in the coming years. Also Read: VeChain: VET Price Prediction for the End of April 2023 Source: Coingecko Ethereum: A $1,000 In ETH Would Have Turned to $2.5 Million Today Source: newsbtc.com Considering that Ethereum was trading at $0.74 in 2015, a $1,000 investment w
Read more

How AI is changing crypto: Hype vs. reality

Image
In the latest Cointelegraph Report, we assessed the value AI is bringing to the crypto industry, by separating the hype from real use cases. In the latest Cointelegraph Report, we sought to find out the real value AI brings to the crypto industry beyond the hype surrounding the technology. To do so, we looked into three main areas where AI is impacting crypto : trading, data analytics, and user experience.  For many years, trading bots have allowed users to execute trades in an automated way based on certain pre-set parameters.  With the recent development of Large Language Models such as ChatGPT, AI-powered bots are capable of processing large amounts of historical data, which can be helpful in predicting future price movements.  However, despite the latest advancements, AI-powered bots are still not sophisticated enough to elaborate complex trading strategies. “It's basically like having a bunch of dumb partners who can, who can adhere to very basic commands, but they can'
Read more