First transaction in the BRICS in local currency

In what is a historic development for the BRICS nations, India made its first payment in local currency to the United Arab Emirates (UAE) in an oil trade. In fact, the agreement allowed both countries to resolve trade in rupees after agreeing to abandon the US dollar in bilateral agreements earlier this year.

The agreement was a key part of the de-dollarization efforts of economic alliances instituted throughout this year. Additionally, the United Arab Emirates was one of five nations welcomed into the bloc during its annual summit in 2023. It joined Saudi Arabia, Egypt, Iran and Ethiopia as its newest members.

By: Dr. Félix Daniel Barrios