Addition of KSA, UAE, Iran means share has doubled to 42% of crude oil output in 2022. "Saudi pricing oil exports to China and India in non-dollar currencies does not spell the end of the dollar as the international currency of choice,” says ING. Trade within bloc makes trade hard to sanction by West.
This is going to turn into just bartering. Saudi has no food, China has no oil, Brazil owes China gazillions and they’ll pay in soybeans.
This is going to turn into just bartering.
If it avoids the use of the USD, it is still better for the BRICS goals.
How do they get around that global commodities are stil priced in dollars
Are you honestly asking?
By agreeing a price/exchange rate among themselves.
It is not rocket science. Humans managed to trade with each other for thousands of years before the USA existed, I am sure they will work something out.
And that price/ exchange rate is still going to be tied to every other commodity, and energy, that’s priced in dollars…
No. it will not.
Ok, so you agree to sell/exchange beans for oil.
If there is a difference between the value of that to the USD amount then there’s an arbitrage opportunity.
Russia is already selling its oil at massive discounts to Brent crude or West Texas price to India and China. You think India isn’t profiting when that crude has been refined and it loses its Russia label?
Oh look, it is.
This cheaper oil has found new markets — including India, which now purchases nearly two million barrels a day, roughly 45 percent of its imports, according to the International Energy Agency.
In addition to stoking India’s economy, cheap Russian oil has given India a lucrative business refining that crude and exporting the products to other regions that suddenly need fresh energy supplies. That includes the European Union, which has banned direct oil purchases from Russia.
https://www.nytimes.com/interactive/2023/06/22/business/india-russia-oil.html
Again. They do not care. Leaving the influence of the USD is the goal.
Are you too think to understand this?
When they start to tell us there’s no problem, there’s a problem. The US dollar is in decline as the world currency. Too much debt by the US is making other countries nervous to hold too much of their dollars.
The USD as the world reserve currency has propped up the USA for decades. If/when that is no longer the case, the US is in for a serious reality check.
One of the never mentioned things about the Iraq war was that Iraq had announced it would sell its oil without the use of the USD a few months before.
bay of pigs, Venezuela, etc
they certainly used influence better than how china would.
