Popular Articles
Today Week Month Year


DOLLAR DEMISE: India and UAE complete first dollar-free oil sale in RUPEES
By Ethan Huff // Aug 23, 2023

For the first time ever, India and the United Arab Emirates (UAE) settled an oil trade without first converting their respective local currencies to the United States dollar as has been the custom in the age of dollar dominance.

According to reports, Indian Oil Corp., India's top refinery, purchased one million barrels of oil from the Abu Dhabi National Oil Company using only rupees, delivering yet another incremental death blow to U.S. dollar dominance.

The oil sale is the first to occur ever since India and the UAE entered a Memorandum of Understanding (MoU) back in July establishing a Local Currency Settlement (LCS) system that can now be used by the Reserve Bank of India and the Central Bank of the UAE to facilitate trade without the need for U.S. dollars.

Thanks to this MoU, India and the UAE will now be able to engage in bilateral trade for all sorts of things, not just oil, using only the rupee and the dirham. The Reserve Bank of India says the agreement will facilitate "seamless cross-border transactions and payments, and foster greater economic cooperation.

(Related: Last fall, Saudi Arabia replaced the United States with China as its new most "reliable partner.")

The days of U.S. dollar dominance in global trade are numbered

The first test of the LCS system involved the sale of 25 kilograms (kg) worth of gold from a UAE gold exporter to an Indian buyer at a cost of 128.4 million rupees, the equivalent of around $1.54 million.

The test was a success, which is why it was followed up by the sale of actual oil from the UAE to India. India also recently made a purchase of oil from Russia using non-dollar currencies.

Because India currently ranks as the world's third-largest importer of oil, this is a really big deal because it shows that the U.S. dollar is no longer king – or at least it is moving in the direction of becoming irrelevant in world trade much faster than many anticipated.

"Moreover, any surplus balances in the local currencies can be invested in various local assets, including corporate bonds, government securities, and equity markets," WIONews in India further reported about the benefits of using the LCS system.

For the time being, the vast majority of global oil sales are still priced and conducted according to the U.S. dollar. This ensures steady and stable demand for the greenback since every country still needs to convert to it in order to buy and sell oil.

Things are changing, though. The fact that increasingly more countries are shifting away from the U.S. dollar when conducting cross-border sales and purchases of oil and other commodities suggests that the age of the U.S. government being the police force of the world is coming to an end.

The "borrow and spend" policies that have long dominated the U.S. economy will no longer work once enough countries kick the U.S. dollar to the curb. Once that happens, it is game over for the U.S. economy which, like the Titanic, is not too big to fail after all.

"One of the core staples of the past 40 years, and an anchor propping up the dollar's reserve status, was a global financial system based on the petrodollar – this was a world in which oil producers would sell their product to the U.S. (and the rest of the world) for dollars, which they would then recycle the proceeds in dollar-denominated assets and while investing in dollar-denominated markets, explicitly prop up the USD as the world reserve currency, and in the process backstop the standing of the U.S. as the world's undisputed financial superpower," explains Zero Hedge about how the corrupt, fiat-based monetary system of the U.S. has long worked – but that will very soon no longer work.

How much longer do you think the U.S. dollar will remain as king of the global currencies? Find out more at Collapse.news.

Sources for this article include:

ZeroHedge.com

NaturalNews.com



Take Action:
Support NewsTarget by linking to this article from your website.
Permalink to this article:
Copy
Embed article link:
Copy
Reprinting this article:
Non-commercial use is permitted with credit to NewsTarget.com (including a clickable link).
Please contact us for more information.
Free Email Alerts
Get independent news alerts on natural cures, food lab tests, cannabis medicine, science, robotics, drones, privacy and more.

NewsTarget.com © 2022 All Rights Reserved. All content posted on this site is commentary or opinion and is protected under Free Speech. NewsTarget.com is not responsible for content written by contributing authors. The information on this site is provided for educational and entertainment purposes only. It is not intended as a substitute for professional advice of any kind. NewsTarget.com assumes no responsibility for the use or misuse of this material. Your use of this website indicates your agreement to these terms and those published on this site. All trademarks, registered trademarks and servicemarks mentioned on this site are the property of their respective owners.

This site uses cookies
News Target uses cookies to improve your experience on our site. By using this site, you agree to our privacy policy.
Learn More
Close
Get 100% real, uncensored news delivered straight to your inbox
You can unsubscribe at any time. Your email privacy is completely protected.