BRICS Move 78% of Oil Trade to Local Currencies – The Dollar is on the Brink

By Bill Brocius

BRICS’ Oil Deals Defy the Dollar – A Sanctions Backfire

Russia's pivot toward China and India for oil sales has been nothing short of a masterstroke. After the US slammed Russia with sanctions in early 2022 over the invasion of Ukraine, Moscow wasted no time finding alternative buyers in the BRICS network. Not only did these deals keep Russia’s economy afloat, but they also began reshaping the way global oil trade is settled—without the US dollar.

India and China capitalized on the sanctions by purchasing Russian oil at steep discounts, locking in millions of barrels of crude at prices far below market rates. In the process, India alone saved around $7 billion by paying in local currencies instead of using the dollar.

This is a monumental shift. Just two years ago, in 2021, only 32% of Russia’s oil trade with BRICS partners was settled in non-dollar currencies. Fast forward to today, and that number has surged to 78%. This trend is not only weakening the dollar’s dominance but also reinforcing the financial independence of emerging economies.

China’s Yuan Gains Ground, Saudi Arabia Joins the Play

China, the world’s largest energy consumer, paid for Russian oil using the yuan—further insulating both economies from Western financial pressure. These alternative currency transactions have proven essential for Russia as it weathers sanctions.

But Russia’s oil strategy didn’t stop with BRICS partners. Even Saudi Arabia—a long-time US ally—joined the game, buying Russian oil at discounted prices and quietly reselling it across Europe. The consequences of these developments are enormous. If major oil producers like Saudi Arabia deepen their involvement with BRICS, it could fundamentally alter the global energy trade and devalue the dollar’s influence.

Sanctions: A Boomerang Effect?

“When the G7 launched a campaign to crush Russia’s economy with sanctions, they didn’t anticipate the resilience of alternative trade systems,” a recent BRICS report notes. Transportation, insurance, and payments infrastructure were rapidly built from scratch—creating a shadow financial network beyond the reach of the US and its allies.

BRICS is not just adapting—it’s thriving under the new order. This oil trade revolution reinforces local currencies, challenges the global dollar standard, and allows emerging markets to sidestep the financial weapons of the West.

The Writing on the Wall for the US Dollar

With BRICS steadily moving toward settling more than two-thirds of their total trade in local currencies, the dollar’s role in global commerce is shrinking fast. At the 2024 BRICS Summit, 35 more countries signaled plans to reduce or eliminate their reliance on the dollar, accelerating the shift toward multipolar trade systems.

This is not just a temporary trend. It’s a strategic response to the West's overreach, and it’s gaining momentum. Every oil deal settled outside the dollar chips away at the US’s ability to project financial power. The repercussions for Americans are real: higher inflation, reduced global demand for the dollar, and weakened purchasing power.

Take Action Now – Safeguard Your Wealth Before It's Too Late

If you think the ripple effects of this BRICS revolution won’t touch your bank account, think again. When major global currencies like the yuan gain dominance, the dollar loses value—and that hits your savings and investments directly. Don’t wait for the crisis to knock on your door.

Download my free ebook, “7 Steps to Protect Your Account from Bank Failure”, and get practical strategies to safeguard your assets before the next wave of financial instability.

For those who want deeper insights, join my Inner Circle membership program—just $19.95 a month. You’ll get exclusive analysis on global de-dollarization trends, early warnings about economic risks, and actionable advice to protect your wealth. The next financial collapse isn’t a question of if, but when.

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