Key BRICS Member Admits The Dollar Will Remain Dominant Despite Oil Deals In Rupees And Yuan

Filip De Mott  Mon, August 28, 2023

Indian Oil and Gas Minister Hardeep Singh Puri doesn't see de-dollarization as taking root yet.

"I wish the Indian rupee should be the lead currency in the world. But I'm also a realist," he said.

That's despite India's recent purchases of oil using the rupee and China's yuan.

The greenback's dominance is under no real threat from emerging market currencies, India's oil and gas minister told CNBC, despite recent efforts to de-dollarize global trade.

The dollar is the dominant form of payment for commodities like oil. But in June, Indian refiners used China's yuan to buy Russian crude. And earlier this month, an Indian refiner used rupees to buy oil from the UAE.

When asked about the dollar's role in the oil market, Hardeep Singh Puri replied, it's "not so easy" to replace it. When pressed further if the dollar's prominence will remain, he replied, "Yes, I think it will."

His comments come after the BRICS bloc of developing economies held its 15th annual summit last week, where ideas for how to de-dollarize were discussed.

The coalition — made up of Brazil, Russia, India, China, and South Africa — has previously floated the concept of a new BRICS currency, but support for such an initiative was relatively lacking during the event. More emphasis was laid on efforts to increase trade in existing local currencies.

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