The dominance of the U.S. dollar in international oil trade is facing challenges, particularly in Russia's lucrative oil trade routes. India, Russia's largest buyer of seaborne oil, insisted on paying in rupees, creating difficulties due to the currency's limited convertibility and value outside India. Russian oil suppliers, under informal guidance from the central bank, couldn't accept rupees. This clash jeopardized trading activity, prompting temporary solutions involving Chinese yuan, Hong Kong dollar, and UAE dirham. The broader issue persists, affecting buyers in Africa, China, and Turkey. Russia is exploring alternatives to the dollar, and the challenges are expected to intensify with increased scrutiny on the trade.

SOURCE: GOOGLE