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Oil, the historical pillar of the dollar, is beginning to retreat from it. Through a series of discreet but strategic agreements, BRICS is accelerating a shift that is undermining the established monetary order. The yuan is gradually gaining ground in the energy trade, supported by new financial infrastructures. Between geopolitical rivalries and the reconfiguration of global flows, these dynamics open up a disruption of the dollar’s dominance and signal a profound mutation in the international monetary system.
In short
- The oil market begins an unprecedented shift with the emergence of the yuan in energy transactions.
- BRICS is accelerating de-dollarization by directly bypassing the dollar on its strategic exchanges.
- Countries such as India and Iran accept payments in yuan, illustrating a particular change in global trade.
- Despite this dynamic, the dollar maintains its dominant position, revealing a gradual transition to a multipolar order.
Oil is moving away from the dollar
The challenge to the petrodollar is now materializing in concrete transactions between major energy powers. Several BRICS countries are stepping up the use of the yuan in their trade, bypassing traditional dollar-dominated circuits.
This move takes place in the context of geopolitical tensions, where the US currency is seen as an instrument of influence. Vladimir Putin sums up this perception by saying: “The United States has turned the dollar into a weapon”.
This opinion is shared by some Western analysts. David Lubin, a researcher at Chatham House, notes that “This growing sense that the dollar is being used as a weapon partly explains why its dominance is increasingly being challenged…”.
Behind these remarks is a tangible development: the increasing use of alternative currencies in strategic exchanges, especially in the energy sector, historically structured around the dollar.
- India bought about 60 million barrels of Russian oil in March, some of which was paid directly in yuan;
- Indian Oil Corporation made payments without dollar conversion, marking a technical break in energy transactions;
- Iran now charges its Strait of Hormuz tolls in yuan of about $2 million to pass through the area, which accounts for nearly 20% of the world’s oil.
An alternative financial architecture is taking shape
Beyond the oil transactions, a deeper transformation is taking place: the building of a parallel financial system. The mBridge platform has already processed 387.2 billion yuan (about $55 billion), of which 95% was in digital yuan, while China’s CIPS payment system has recorded $245,000 billion in transactions in 2025.
These infrastructures provide concrete alternatives to dollar-dominated circuits, allowing participating BRICS countries to reduce their dependence on the Western financial system.
At the same time, macroeconomic indicators confirm this development. The dollar’s share of global reserves has fallen from 71% to 56.3% since 2008, while central banks have hoarded more than 1,000 tonnes of gold a year over the past three years. Despite this, the dollar remains dominant, still accounting for 89.2% of foreign exchange transactions, and the yuan is constrained by China’s capital controls.
This dynamic sets the stage for a more fragmented monetary system. Projections mention the coming balance between several poles dominated by the dollar, euro and yuan. While this shift remains gradual, the observed changes in energy trade and financial infrastructure suggest that the transition is already underway and has lasting implications for the global economic order.
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A graduate of Sciences Po Toulouse and holder of the blockchain consultant certification issued by Alyra, I joined the Cointribune adventure in 2019. Convinced of the potential of blockchain to transform many sectors of the economy, I committed myself to raising awareness and informing the general public about this ever-evolving ecosystem. My goal is to enable everyone to better understand blockchain and take advantage of the opportunities it offers. I strive every day to provide an objective analysis of current events, decipher market trends, convey the latest technological innovations, and put into perspective the economic and social issues of this ongoing revolution.
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The views, thoughts and opinions expressed in this article are solely those of the author and should not be construed as investment advice. Before making any investment decision, do your own research.
