From the article: BRICS nations are considering adopting the petroyuan for oil trade as part of their ongoing dedollarization efforts, according to economic expert Herbert Poenisch. He noted the BRICS group may discuss alternatives to the petrodollar at their Kazan summit. He highlighted Saudi Arabia’s potential shift towards the petroyuan and Russia’s plans to reduce dollar reliance. However, challenges remain, particularly the availability of renminbi for oil-importing countries.
Herbert Poenisch, senior fellow at Zhejiang University and former economist at the Bank for International Settlements, outlined in an opinion piece published by the Official Monetary and Financial Institutions Forum (OMFIF) why the BRICS bloc is considering introducing the petroyuan during its upcoming dedollarization efforts at the Kazan summit in October. The OMFIF is an independent think tank focused on central banking, economic policy, and public investment.
He explained that the expanded BRICS group — which now includes Brazil, Russia, India, China, South Africa, Saudi Arabia, the United Arab Emirates (UAE), Iran, Egypt, and Ethiopia — may use the Kazan summit to explore alternatives to the petrodollar system. Noting that “Saudi Arabia, the world’s main supplier of petrol, has also joined Project Mbridge, the Bank for International Settlements’ digital currency arrangement,” he opined:
The country has made comments about considering alternatives to the present dollar-based oil payments system and being open to using the petroyuan for oil settlements.
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From the article: BRICS nations are considering adopting the petroyuan for oil trade as part of their ongoing dedollarization efforts, according to economic expert Herbert Poenisch. He noted the BRICS group may discuss alternatives to the petrodollar at their Kazan summit. He highlighted Saudi Arabia’s potential shift towards the petroyuan and Russia’s plans to reduce dollar reliance. However, challenges remain, particularly the availability of renminbi for oil-importing countries.
Herbert Poenisch, senior fellow at Zhejiang University and former economist at the Bank for International Settlements, outlined in an opinion piece published by the Official Monetary and Financial Institutions Forum (OMFIF) why the BRICS bloc is considering introducing the petroyuan during its upcoming dedollarization efforts at the Kazan summit in October. The OMFIF is an independent think tank focused on central banking, economic policy, and public investment.
He explained that the expanded BRICS group — which now includes Brazil, Russia, India, China, South Africa, Saudi Arabia, the United Arab Emirates (UAE), Iran, Egypt, and Ethiopia — may use the Kazan summit to explore alternatives to the petrodollar system. Noting that “Saudi Arabia, the world’s main supplier of petrol, has also joined Project Mbridge, the Bank for International Settlements’ digital currency arrangement,” he opined:
The country has made comments about considering alternatives to the present dollar-based oil payments system and being open to using the petroyuan for oil settlements.