Another country has officially abandoned the US dollar

Due to the imposition of US sanctions on developing countries, they are forced to sever ties with the dollar and look for alternatives. BRICS is filling that void and helping other developing countries survive without using the US dollar for trade. Sanctions could prove costly for the US as the world looks to de-dollarization to strengthen its local currency and domestic economy. In the wake of de-dollarization and sanctions, a new country has officially ditched the US dollar to conduct oil trade. The decision follows the BRICS policy of using local currencies for cross-border transactions. If the BRICS devalues ​​the dollar for trade, multiple US sectors will suffer. Amid the turmoil, Venezuela’s state-run oil company PDVSA plans to use a digital currency to trade crude oil instead of the US dollar.

The move comes after the US reimposed sanctions on Venezuela, making it difficult for the Latin American country to conduct trade. Also, the US has made it difficult for the country to export crude oil, and Venezuela is now looking into digital currency payments. Venezuela has also applied to join BRICS and is seeking to become a part of the group.

“We have different currencies according to what the agreement says,” Venezuela’s oil minister Pedro Telecchia told Reuters. In some contracts, it is specified that the payment method will include digital currency.

Therefore, the US dollar will no longer be needed to settle the crude oil trade with Venezuela and the decision belongs to the BRICS norm’.

Venezuela has officially submitted its application to join BRICS and hopes to receive an invitation to the October summit. The 16th summit is scheduled to take place this year in the Kazan region of Russia.

Source: watcher.guru