The war on Ukraine has no doubt made the Dollar stronger, but the sanctions on Russia has compelled russian trading partners to circumvent use of dollar by adopting alternate currency to settle their international trades. For example, India has purchase of Russian gas has double or nearly trippled post Ukraine war, and Russian has openly agreed to settle their trades with Indian Rupee and in some case with Russian Rouble.
Recently, due to influence of China on african and south american countries has decided to adopt Yuan as a currency to settle their trades with China and also with Non-China partners. This act surely, derails the authority of dollar to some extent.
Pakistan to Buy Russian Oil in Chineese Yuan
Pakistan has decided to buy 100,000 tonnes of discounted oil from russian with chinese yuan currency . The first shipment of 100,000 tonnes of Ural crude oil will arrive in Karachi by the last week of this month. After the first shipment is successful, regular deliveries will start, leading to eventual double-figure decreases in local petrol prices throughout the summer.
Pakistan has negotiated about a price of around $55 per barrel. Which is about a $16/barrel discount to prevailing market prices. The final refined product and availability of Yuan also factors into the final economics, which is bound to have terrible impact on the US Dollar. Perhaps the Pakistan would surely want to reap a benefit by buying much cheaper oil than having to buy internationally.
BRICS – Association of Nations with USA Influene
BRICS is an association of Brazil, Russia, India, China and South Africa.
Ashok Swain, a professor of peace and conflict research at Uppsala University in Sweden, has stated that, Saudi Arabia joining the BRICS group of nation would increase acceptance of chineese yuan currency as a trading currency. Professor Swain is head of Uppsala University’s Department of Peace and Conflict Research. He is also the UNESCO chair on International Water Cooperation.
Commenting on Saudi Arabia joining the Shanghai Cooperation Organization (SCO) and the BRICS, which comprises Brazil, Russia, India, China, and South Africa, he said:
“There is no doubt that Saudi Arabia becoming a member of China-dominated SCO and BRICS would accelerate the bilateral trading being conducted using the yuan as the trading currency.”