Iran's Bold De-Dollarization Strategy: A Threat to US Economic Hegemony
The new BRICS member Iran proposed an ambitious de-dollarization campaign that could change bilateral oil and gas trade deals forever. The proposal, if implemented, could usher into a new era of oil trade leading to a paradigm shift in the energy sector. Iran is initiating all possible ways to advance the de-dollarization agenda and counter the global dominance of the US.
De-dollarization is now an important goal of Iran to counter the US sanctions pressed on its economy. Iran is now proposing a new oil deal that will benefit the BRICS alliance and reduce dependency on the US.
De-Dollarization: Iran Proposes to Supply Oil to All BRICS Countries
Source: BBC
BRICS member Iran proposed that it’s ready to supply oil and gas to all BRICS countries. The proposal states that in return, BRICS members can meet Iran’s banking and trade exchange needs to help revive its economy from sanctions. Iran can officially bypass US sanctions and make its economy thrive if BRICS agrees to the new oil proposal.
“Iran can provide oil and gas to BRICS countries to meet their energy needs, and in return, other member states can take steps to meet Iran’s needs in various banking and trade exchange sectors,” read the proposal. The new de-dollarization campaign by Iran could be a topic of discussion in the upcoming BRICS summit in October in Russia’s Kazan region.
The oil and gas deal, if agreed by BRICS, will be settled in local currencies and not the US dollar. Countries like China and Russia might agree to Iran’s de-dollarization plan while other members, especially India could back out. India recently shifted to buying US oil and sidelined Russia’s demands to pay the Chinese yuan for trade settlement.
