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 <p>Saudi Arabia’s induction into the BRICS alliance threatens the US dollar’s prospects as the de-facto currency for oil payments. Mohammed Al-Jadaan, Saudi Arabia’s Finance Minister announced a week before the 15th BRICS summit in August that the Kingdom was considering dropping the US dollar for international oil trade. The statement ruffled a lot of feathers in the US and the Western world but was welcomed by developing countries.</p>
 <p><strong>Also Read: BRICS: Argentina Ditches US Dollar For IMF Payment, Pays Chinese Yuan</strong></p>
 <p><a rel="noopener noreferrer nofollow" title="Oil" href="https://thebittimes.com/tag/oil.html">Oil</a> is <a rel="noopener noreferrer nofollow" title="Saudi Arabia" href="https://thebittimes.com/tag/saudi-arabia.html">Saudi Arabia</a>’s primary and most valuable natural resource. The Kingdom exports millions of barrels of <a rel="noopener noreferrer nofollow" title="Oil" href="https://thebittimes.com/tag/oil.html">Oil</a> every year to both developing and developed countries in the West. Al-Jadaan’s comments indicate that <a rel="noopener noreferrer nofollow" title="Saudi Arabia" href="https://thebittimes.com/tag/saudi-arabia.html">Saudi Arabia</a> might someday accept all local currencies for <a rel="noopener noreferrer nofollow" title="Oil" href="https://thebittimes.com/tag/oil.html">Oil</a> payments and not the US dollar.</p>
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 <p>The move comes straight from the <a rel="noopener noreferrer nofollow" title="BRICS" href="https://thebittimes.com/tag/brics.html">BRICS</a> playbook as the alliance is looking to bring the US dollar down by controlling the <a rel="noopener noreferrer nofollow" title="Oil" href="https://thebittimes.com/tag/oil.html">Oil</a> sector, which is helmed by <a rel="noopener noreferrer nofollow" title="Saudi Arabia" href="https://thebittimes.com/tag/saudi-arabia.html">Saudi Arabia</a>. In this article, we will highlight how the US dollar will be affected if <a rel="noopener noreferrer nofollow" title="Saudi Arabia" href="https://thebittimes.com/tag/saudi-arabia.html">Saudi Arabia</a> &amp; <a rel="noopener noreferrer nofollow" title="BRICS" href="https://thebittimes.com/tag/brics.html">BRICS</a> ditch the USD for <a rel="noopener noreferrer nofollow" title="Oil" href="https://thebittimes.com/tag/oil.html">Oil</a> trade.</p>
 <p><strong>Also Read: BRICS: African Countries to Ditch U.S. Dollar &amp; Embrace New Currency?</strong></p>
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 <h2 class="wp-block-heading" id="h-brics-what-will-happen-if-saudi-arabia-accepts-local-currencies-amp-not-us-dollar-for-oil">BRICS: What Will Happen If Saudi Arabia Accepts Local Currencies &amp; Not US Dollar For Oil?</h2>
 <figure class="wp-block-image size-large"><img decoding="async" width="1024" height="683" src="https://cdn.thebittimes.com/images/2023/11/06/cc7b2638bb0c6a781f5b584f78453a44.webp" alt="Extended BRICS Saudi Arabia Oil Gas Commodity GDP" class="wp-image-110044" srcset="https://cdn.thebittimes.com/images/2023/11/06/cc7b2638bb0c6a781f5b584f78453a44.webp 1024w, https://cdn.thebittimes.com/images/2023/11/06/cc7b2638bb0c6a781f5b584f78453a44.webp 300w, https://cdn.thebittimes.com/images/2023/11/06/cc7b2638bb0c6a781f5b584f78453a44.webp 768w, https://cdn.thebittimes.com/images/2023/11/06/cc7b2638bb0c6a781f5b584f78453a44.webp 380w, https://cdn.thebittimes.com/images/2023/11/06/cc7b2638bb0c6a781f5b584f78453a44.webp 550w, https://cdn.thebittimes.com/images/2023/11/06/cc7b2638bb0c6a781f5b584f78453a44.webp 800w, https://cdn.thebittimes.com/images/2023/11/06/cc7b2638bb0c6a781f5b584f78453a44.webp 1160w, https://cdn.thebittimes.com/images/2023/11/06/cc7b2638bb0c6a781f5b584f78453a44.webp 1200w" sizes="(max-width: 1024px) 100vw, 1024px">
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   Source: oilandgasmiddleeast.com / ShutterStock
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 <p>Trillions worth of US dollars will come back to America if Saudi Arabia ditches the US dollar for oil trade. If Saudi Arabia drops the US dollar for oil, many other countries will follow suit and sell their treasury bonds. All countries offloading US treasury bonds to buy oil from Saudi Arabia will begin to settle trade in local currencies.</p>
 <p><strong>Also Read: <a rel="noopener noreferrer nofollow" title="BRICS" href="https://thebittimes.com/tag/brics.html">BRICS</a> Global Trade Rises 56%, Reach $422 Billion</strong></p>
 <p>The development will strengthen the BRICS local currencies and their native economies going forward. If trillions of US dollars are sold, inflation will begin to spiral in America. The US will find it hard to fund its deficit and the situation might also lead to hyperinflation. Read here to know how many sectors in the US will be affected if BRICS completely stops using the dollar.</p>
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<div class="cs-entry__tags">
 <ul>
  <li>BRICS</li>
  <li>Oil</li>
  <li>Saudi Arabia</li>
  <li>US DOLLAR</li>
 </ul>
</div>
<p>Source: <a rel="noopener noreferrer nofollow" target="_blank" href="https://thebittimes.com/brics-what-happens-if-saudi-arabia-ditches-us-dollar-for-oil-tbt69159.html">https://thebittimes.com/brics-what-happens-if-saudi-arabia-ditches-us-dollar-for-oil-tbt69159.html</a></p>

BRICS: What Happens if Saudi Arabia Ditches US Dollar for Oil?

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