In a battle with the US dollar, Russia may obtain unexpected allies. Following the results of the recent BRICS summit, six countries were invited to join the organization. Almost none of them are enthusiastic about the hegemony of the dollar in global markets. Iran, Saudi Arabia, Ethiopia, Argentina, Egypt, and the UAE are supporting the de-dollarization. It will be much easier to implement this idea within the BRICS, especially since Russia, China, and India have already tested a new scheme of trade settlements.
Notably, all the newcomers are the largest oil exporters. It means that the group has every chance to depose the US currency. However, by the moment, the BRIC members have issued mixed comments. Not all of them are ready to abandon the greenback. Nevertheless, the overall intention to reduce its dominance is undeniable. Iran, which has faced tough sanctions from the United States, is most actively supporting the de-dollarization. Other countries have different views on the situation. In any case, the invitation of six new countries into the BRICS could create serious problems for the dollar.
It is a really important step that the bloc accepted the exporting countries of the most important energy goods, which are usually denominated in US dollars, actively traded, and are a key component of the global economy. Any decision in favor of trading in non-dollar currencies may boost the global economy as a whole. On the other hand, the UAE has not made a public statement about refusing to trade in US dollars but has made it clear that the country wants to abandon excessive dependence on a partnership with the West. Egypt is seriously considering trading non-dollar currencies. Like Argentina, Egypt has been suffering from a shortage of dollars since 2022, when the Fed started hiking interest rates, thus strengthening the greenback.
