De-Dollarization Collapse: US Strong-Arms India & Russia Into Paying for Oil in Dirhams

The dollar's iron grip tightens—again.

In a plot twist that would make Bretton Woods architects blush, Washington just forced Moscow and New Delhi to settle oil trades in UAE dirhams. So much for that 'multipolar currency world' everyone keeps promising.

The petrodollar playbook strikes back

Behind closed doors, Treasury officials reportedly threatened secondary sanctions unless transactions abandoned rubles and rupees. Now tankers leaving Russian ports carry invoices denominated in the Gulf currency—with a hefty side of geopolitical irony.

Emerging markets? More like emergency markets

India's energy imports now dance to America's financial tune, while Russia's 'sanctions-proof' trade strategies crumble faster than a shitcoin stablecoin. The takeaway? When the Fed wants compliance, even BRICS nations still bend the knee.

Goldbugs and Bitcoin maximalists just got fresh ammo—but let's see if their alternative systems survive first contact with actual superpower coercion. After all, the dollar didn't become the world's reserve currency by playing nice.

India & Russia’s De-Dollarization Plan Fails as UAE’s Dirham Gains

Since the US tightened sanctions on Russia, Indian refiners are forced to source Russian oil from traders in the UAE. While the initial de-dollarization plan was to use the rupee-ruble for oil, India now has to pay dirhams for procurement. Suppliers in the UAE have made it clear that they accept the US dollar and for local currencies, only dirhams. And what is the dirhams pegged to? It’s pegged to the US dollar at 3.67 AED to 1 USD.

Therefore, the UAE and the US dollar are benefiting from the failed de-dollarization plan hatched by India and Russia. Despite the agreement to use rupee-ruble for oil, India is buying via West Asia-based traders and not directly with Russia. Two people familiar with the matter told Mint on the condition of anonymity that India and Russia are working to resolve the issue.said a person close to the development.

said the source, indicating that de-dollarization is faltering.