Replying to Avatar iefan 🕊️

So, most of the countries used to purchase oil in dollars. However, now that oil-producing countries are part of BRICS, they might begin buying oil using their local currencies or even the yuan.

Together, these countries represent 32.1% of the world's GDP, while the G7 accounts for 29.9%.

For context: This concept of the 'petrodollar' used to be a cornerstone of the dollar's strength.
Avatar
KarMa 2y ago

Sure. But I still can't see what they're actually gaining there (except for more pressure against US - which is a lot obciously) But oil is not a curreny. Who set's the price of oil? And you can't build up oil depts.

Reply to this note

Please Login to reply.

Discussion

Avatar
Matt 2y ago

It may not be a currency, but it is wealth. It doesn't really matter what currency they use as long as they can acquire enough of it to make the trade.