Expert Highlights BRICS’ Move Towards Petroyuan in Oil Trade Amid Dedollarization Initiative

BRICS nations are exploring the adoption of the petroyuan for oil trade as part of their dedollarization strategy, according to economic expert Herbert Poenisch.

At the upcoming Kazan summit, the expanded BRICS group—now including Saudi Arabia, the UAE, and others—may discuss alternatives to the petrodollar. Poenisch highlighted Saudi Arabia’s potential shift towards the petroyuan and Russia’s efforts to reduce dollar dependency. However, challenges remain, particularly regarding the availability of renminbi for oil-importing countries, which may struggle to acquire enough currency for transactions.

The success of the petroyuan will depend on establishing a system to distribute renminbi effectively, benefiting Chinese banks while potentially fragmenting the global financial system.

Clever Robot News Desk 27^th September 2024