Nigeria blows up dollar chains: oil only in Naira!

Nigeria blows up dollar chains: oil only in Naira!

A remarkable development is emerging for the BRICS block, since Nigeria has announced that it has to say goodbye to the US dollar in oil transactions. Instead, the country plans to sell crude oil in local currencies, which corresponds to the efforts of the economic alliance, to reduce global dependence on the US dollar. This decision could influence the country's economic policy.

Mohammed Manga, the director of information and public relations in the Nigerian Ministry of Finance, announced the news on Sunday. Manga emphasized that the Federal Executive Council (FEC) had already started to handle the sales of crude oil in the national currency Naira. This measure coincides with the upcoming BRICS summit 2024. More on this at Watcher.Guru

economic strategies in change

Since 2022, the BRICS block has been increasingly relying on the "de-dollarization", ie the disempowerment of the US dollar in international business. Within the Allianz it is aimed at strengthening the importance of your own regional currencies. Sanctions against the dollar have contributed to a loss of trust in the currency in recent years. These developments now also seem to gain influence outside of the Brics community.

nigeria has recently expressed its ambitions subliminally to join the BRICS block. In 2023, the country announced its intention to join the economic community within two years-a clear step towards South-South cooperation, far from Western interests.

other relationships and perspectives

The decision to give up the US dollar is seen as a strategic initiative that is intended to promote stability and growth of the Nigerian economy. According to the manga, this step is part of Nigeria's efforts to assert itself in a changing global economic landscape. The country has 37 billion barrels of oil reserves, which corresponds to about 3.1 % of the global reserves. Thus, the decision to handle oil sales in Naira could have a significant impact on the global oil market.

The effects on the US dollar could be significant because Nigeria is an important oil nation. Through this turn in trade policy, Nigeria demonstrates his interest in strengthening his influence in the BRICS block and more blinding itself with the emerging economies of the global south.

This decision, with which Nigeria takes new ground, is undoubtedly observed with interest from other countries that think about the diversification of their currency reserves. An in-depth analysis of the topic offers The article by watcher.guru .