The global energy trade is undergoing a rapid shift away from the U.S. dollar, driven by BRICS nations adopting the Chinese yuan for oil transactions. Indian refiners are settling Russian crude in yuan, while Iran is imposing yuan-denominated tolls at the Strait of Hormuz. Concurrently, the BRICS alternative payment system is processing hundreds of billions in non-dollar transactions, signaling a tangible decline in the petrodollar system.
A senior Iranian official stated that Iran wants oil tankers crossing the Strait of Hormuz to trade cargo in yuan. An Iranian parliament member confirmed tolls are approximately $2 million per voyage, with formal legislation underway.
In March 2026, Indian refiners purchased about 60 million barrels of Russian crude, with significant portions settled in yuan. Indian Oil Corporation made direct yuan payments for multiple cargoes, marking India’s largest monthly non-dollar energy trade volume.
The infrastructure enabling this shift includes the mBridge cross-border CBDC platform, which has processed around $55 billion, and China’s CIPS network, which settled $245 trillion in yuan transactions in 2025. The dollar’s share of global reserves has dropped from 71% to 56.3% since 2008.
Russian President Vladimir Putin stated, “The US has weaponized the dollar.” David Lubin of Chatham House noted this weaponization is a key driver, saying, “This growing sense that the dollar is being weaponized is one reason why dollar dominance is coming under increasing question.”
The dollar remains dominant, involved in 89.2% of all foreign exchange transactions according to a 2025 survey. However, BRICS nations have ruled out a common currency, and Russia confirmed in January 2026 that talks on unification are not occurring.
