Business

BRICS Expansion Could End US Dollar Dominance in Oil Trade

RawNews1st October 15, 2023

BRICS Expansion Could End US Dollar Dominance in Oil Trade: Us Financial Experts Warn of Dangers Ahead

With the BRICS emerging as a major trading bloc with its expansion of six more countries, including Saudi Arabia, since the last South African meet, question bothering many traders in the US is, whether it will end the era of petrodollars particularly in the oil business.

While there is no such currency as a Petrodollar, the US currency, the dollar or the greenback is the medium in which most global trade is conducted among nations around the world.

The world buys oil from the Middle East in dollars and that’s how the word petrodollar stuck for the earnings of the Arab countries from sale of crude and POL (Petroleum, Oil and Lubricants).

The concept of the petrodollar has been a central element in global economics and geopolitics for decades. It refers to the practice of trading oil in US dollars, which has provided the US with significant economic and political advantages.

However, in recent years, there has been speculation about the decline of the petrodollar and the rise of new alternatives, US financial analysts say.