BRICS nations and parts of Europe are shifting energy and trade settlements away from the US dollar. This change has emerged recently across global energy markets.
Data shows roughly 80% of oil trades still use the petrodollar, while 20% use local currencies. (Ed. note: 20% could rise toward 25-30%.)
Members of BRICS including China, India, and Russia are promoting alternatives to dollar settlements. China is pushing the petro-yuan and has settled purchases of oil, coal, and copper in yuan.
India has paid in yuan and other local currencies, including the UAE‘s dirham. Russia has also promoted non-dollar settlements in bilateral energy agreements.
The BRICS bloc accounts for nearly 40% of global oil production, giving it market leverage. That scale could enable local currencies to gain wider use over time.
