India Makes Historic Shift: Buys 1 billion barrels of oil from UAE in rupees, bypassing US dollar
In a significant development, India, a member of the BRICS group, has executed its inaugural oil purchase from the United Arab Emirates (UAE) using its national currency.
This move follows an agreement reached between India and the UAE in July, allowing them to trade using the Indian rupee instead of the US dollar.
According to reports, last week the two nations initiated trading in their respective local currencies.
Indian Oil, an energy company, utilized rupees for payment in the acquisition of one million barrels of oil from the state-owned Abu Dhabi National Oil Company.
India is not alone in its endeavour to conduct energy transactions with the UAE using local currencies, bypassing the US dollar.
In March, China’s oil and gas giant, the China National Offshore Oil Corporation, reportedly employed the yuan to import 65,000 tons of liquefied natural gas from the UAE.
Furthermore, in May, China announced the signing of global currency settlement agreements worth $582.3 billion, exclusively utilizing the yuan.
The UAE is among the countries that have entered into this agreement with China, alongside Russia, Venezuela, Oman, Bahrain, Qatar, Kuwait, and Saudi Arabia.
These recent moves by China and India underscore the collective efforts of the BRICS alliance to reduce dependence on the US dollar in global transactions.
BRICS, composed of Brazil, Russia, India, China, and South Africa, represents an economic bloc focused on fostering cooperation and driving growth among its member nations.