India and Nigeria are leaving the dollar


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Nicholas T.

India, an important driver of de-dollarization, will strike again by clearing the dollar from its trade with Nigeria.

More dollars between New Delhi and Abuja

BRICS no longer wants to trade in dollars. China and Russia have completely pushed it out of their trade. More than 90% of Sino-Russian payments are now made in rubles or yuan.

De-dollarization is a condition sine qua non for joining the BRICS alliance. Nigeria wants to be part of it and has just proven its credentials by abandoning the dollar for trade with India.

The two countries agreed on a settlement system in national currencies to boost their bilateral trade. Nigeria is India’s second largest trading partner in Africa. Their trade was $12 and $8 billion in 2022 and 2023, respectively.

The African giant imports a lot of Indian pharmaceutical products in exchange for its oil. Links are also important in renewable energy, agriculture, education and transport, RT reports.

From now on, these exchanges will be settled in Indian Rupees and Nigerian Naira. The official Indian delegation included representatives of Reserve Bank of India (RBI), EXIM Bank of India and National Payments Corporation of India (NPCI).

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

The BRICS are preparing for the collapse of the international monetary system, and countries such as Saudi Arabia do not hide their fears of freezing Russian foreign exchange reserves.

Developing nations are tired of the excessive privilege of the United States (the petrodollar). We need look no further to understand the origins of the current geopolitical tensions.

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Nicholas T.

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