BRICS Nations Cling to USD for Oil—Local Currencies Take a Hit

Despite years of de-dollarization rhetoric, BRICS members are quietly funneling more greenbacks into oil trades—while their homegrown currencies flounder. The irony? Even alliances built to sidestep the Fed’s grip still need its paper to keep the lights on.

Local currencies dip as demand for USD surges in energy markets. Another day, another reminder that petrodollars still rule—no matter how many blockchain conferences you host.

BRICS: US Dollar Faces Resurgence Against Local Currency For Oil Payments

The demand for oil is on the rise while Nigerian oil refiners are taking losses by accepting the naira. The US dollar is facing a resurgence as refiners now want the greenback to maintain profits.reported NairaMetrics. Therefore, the BRICS idea of using local currency for oil and not the US dollar is not progressing but failing.

The US dollar is closely tied to the oil and gas industry and eliminating it can add woes to businesses. The government needs to work closely with refiners before announcing mandates to use local currencies. The BRICS bloc could also face a similar situation if they decide to use local currencies for oil and not the US dollar. The greenback is a strong force in the energy sector and upending it will only end up hurting your arm.