Petro-Dollar Update: South Africa, India Suddenly Opposed to BRICS Currency

India says ‘nothing to see here, folks, move along from this BRICS bill nonsense.’

At its annual meeting back in August in Johannesburg, some BRICS members led by Brazilian socialist President Lula da Silva pushed a proposal for the increasingly influential trading alliance to mount a challenge to the US Dollar by introducing a BRICS-backed currency.

Since shortly after the end of World War I, the US Dollar has served as the currency of mark for almost all international trades. Because crude oil is by far the most traded commodity on earth, this international norm soon given the name of “Petro-Dollar.” Because this status requires almost all nations on earth to keep a vast store of dollars in reserve to pay for their trading activities, it has served to enhance the strength of the US Dollar in relation to other currencies and greatly enhanced US economic and geopolitical influence.