Breaking the dominance of the dollar: Petrobras considers trading national currencies, including Bitcoin

Rio de Janeiro-based Petrobras, Latin America’s largest oil company, is contemplating the possibility of trading in national currencies instead of relying solely on the US dollar, according to CEO Jean-Paul Prates, writes Sputnik.

Prates stated that Petrobras is open to conducting contracts in yuan, particularly for countries like Argentina that face a scarcity of dollars.

However, the company’s shift towards national currencies would require authorization from the Central Bank and the Ministry of Economy.

Furthermore, Petrobras is also exploring using digital currencies like Bitcoin, and a dedicated department is currently studying this option.

The idea of a common currency for intra-community payments within the Mercosur bloc, proposed by Brazilian President Luiz Inácio Lula, is also under consideration.

This proposal aims to reduce dependence on the US dollar and facilitate trade within the bloc, similar to discussions within the BRICS group.

Several countries, including Russia and India, are increasingly moving away from the US dollar in their bilateral trade relationships.

In the energy sector, Russia and India have explored the possibility of conducting trade in their respective national currencies, such as the rupee.

However, discussions regarding trade settlements in rupees between Moscow and New Delhi were halted in May.

Moscow and Beijing have made significant progress in using their national currencies for bilateral trade.

By 2022, nearly half of the trade exchange between Russia and China was conducted in rubles or yuan, according to official data.

Additionally, approximately 80% of trade between Russia and Iran currently takes place in rubles and rials, indicating a strong trend towards the use of national currencies in trade transactions.

Petrobras’ consideration of trading in national currencies aligns with the global shift away from the US dollar in international trade.

The exploration of alternatives such as digital currencies and the potential creation of a common currency within the Mercosur bloc indicate a growing desire to reduce reliance on the US dollar and promote more efficient trade mechanisms.