BRICS: Saudi Arabia to Sell Oil in Various Currencies

The Kingdom of Saudi Arabia’s 50-year-old agreement with the U.S. to sell oil exclusively in petrodollars has expired. With no new policy in place and the Biden administration not renewing the agreement, Saudi Arabia is now free to sell oil in various currencies. Among the top contenders for oil sales are currencies from BRICS countries, such as the Chinese yuan.

The original petrodollar deal, signed on June 8, 1974, allowed Saudi Arabia to settle oil payments in U.S. dollars exclusively for over five decades. Now, the Kingdom can accept payments in local currencies like the Chinese yuan, Japanese yen, and Indian rupee. The BRICS bloc stands to benefit significantly if Saudi Arabia begins accepting local currencies for oil settlements.