India and Nigeria abandon the dollar

A significant engine of dedollarization, India strikes again by purging the dollar from its trade with Nigeria.

No more dollars between New Delhi and Abuja

The BRICS no longer want to trade in dollars. China and Russia have completely ousted it from their trade exchanges. Now, more than 90% of Sino-Russian payments are made in rubles or yuan.

Dedollarization is a sine qua non condition for joining the BRICS alliance. Nigeria wishes to be a part and has just shown goodwill by abandoning the dollar for its transactions with India.

The two nations have agreed on a national currency settlement system to bolster their bilateral trade. Nigeria is India’s second-largest trading partner in Africa. Their trade totaled 12 and 8 billion dollars in 2022 and 2023, respectively.

The African giant imports a lot of Indian pharmaceutical products in exchange for its oil. The ties are also significant in the renewable energy sector, agriculture, education, and transportation, reports RT.

🇮🇳 #India finalized a major trade partnership with #Nigeria on Friday switching away from the US dollar. Both countries will use local currencies in the bilateral trade agreement for energy, pharmaceuticals, and transport sectors. pic.twitter.com/SKXHNrBsaH

— Resonant News🌍 (@Resonant_News) May 7, 2024

From now on, these transactions will be settled in Indian rupees and Nigerian nairas. The official Indian delegation included representatives from the Reserve Bank of India (RBI), EXIM Bank of India, and National Payments Corporation of India (NPCI).

Not a month goes by without significant nations reducing their dependence on the greenback. Already, more than 20% of global oil purchases are no longer made in dollars. Considering that three major exporters (Saudi Arabia, Iran, United Arab Emirates) have recently joined the BRICS…

The BRICS are preparing for the collapse of the international monetary system and countries like Saudi Arabia do not hide their concern regarding the seizure of Russian foreign exchange reserves.

Emerging nations are tired of the United States’ exorbitant privilege (petrodollar). There is no need to look further to understand the origin of current geopolitical tensions.