BRICS: Why Do Asian Countries Buy Oil With the U.S. Dollar?
Despite looking to cut ties with the U.S. dollar, BRICS and other Asian countries don’t pay local currencies for oil and gas transactions. They prefer using the U.S. dollar for oil trade even after publicly kick-starting the de-dollarization initiative. BRICS mostly contradict their own statements and policies leading to the U.S. dollar reaping the benefits. Also Read: 10 SCO Countries Ready To Ditch US Dollar For Trade One for example, India agreed to pay local currencies for Oil trade with its BRICS counterpart Russia. When asked to pay the Chinese yuan, India backed out and preferred to settle Oil payments in the U.S. dollar. BRICS members contradict themselves on the de-dollarization agenda and are poles apart from making the idea a reality. Also Read: BRICS : US Dollar Wrecking Havoc on Local Currencies Why Do BRICS & Asian Countries Pay the U.S. Dollar For Oil? Source: Reuters / AFP BRICS and other Asian countries pay the U.S. dollar for Oil because local currencies ha...