Saudi Arabia is open to the trade in currencies other than the US dollar and signals a shift towards the DE dollarization-Economics
Saudi Arabia is open to the trade in currencies other than the US dollar and signals a shift towards the DE dollarization-Economics
After a 48-year relationship, Saudi Arabia's Finance Minister Mohammed al-Jadaan said that the kingdom was open to the trade in other currencies than the US dollar. The explanations followed by China's President Xi Jinping, who pushed the golf monarchs to accept Yuan for oil, and civil servants from Riyadh, who said last March, the country would consider the acceptance of the Chinese currency.
Saudi Arabia's departure from the US dollar signals a change in the economic landscape
This week the world elite met in the Swiss Alpine town of Davos for the World Economic Forum 2023, and Saudi Arabia's finance minister Mohammed al-Jadaan spoke to Bloomberg TV on Tuesday. Al-Jadaan stunned reporter When he said that Saudi Arabia was open to the trade in other currencies. "There are no problems discussing how we handle our trade agreements, whether in US dollars, euros or Saudi-Riyal," said Al-Jadaan. The finance minister added:
I do not think that we exclude losses or discussions that help to improve trade around the world.
The statements of the Saudi Arabian finance minister were interpreted as a further step towards de-densdollarization. To understand why the comments from Al-Jadaan are important, you have to do it go back in the time . In 1971 the US government and President Richard Nixon ended the gold standard, and in the next three years Oil prices shot up . 1973 and 1974 Federal Official and US Finance Minister Wilhelm Simon visited with monarchen in riad.
Back then the petrodollar was born the Saudis It was convincing of selling oil in US dollars and providing them with government bonds. In addition to the Saudis, all organizations of the oil-exporting countries (Opec) followed up and priced their oil in US dollars. Many believe that this has given the United States an unfair advantage and that this was the main cause of many of the wars in which the United States has been involved in recent decades. The hegemony of the US dollar apparently threatened .
growing Saudi tensions with the USA
Saudi Arabia, for example, was recently joining Brics states, which include Brazil, Russia, India, China and South Africa. At the China GCC summit, China's President XI Jinping Saudi Arabia asked Yuan to accept oil. In addition, last March Saudi-Arabia Thought to accept the Chinese currency for oil. The Wall Street Journal found that the Saudis were not pleased with the business of US President Biden with Iran on the country's nuclear program.
in October 2022, Report Also claimed that members of the Saudi government, including Crown Prince Mohammed Bin Salman, had made fun of privately about Biden's intellectual sharpness. Al-Jadaan said on Tuesday that the leaders in Saudi Arabia have good relationships with China and other nations.
"We have a very strategic relationship with China and we enjoy the same strategic relationship with other nations, including the United States, and we want to develop them with Europe and other countries that are ready and able to work with us," remarked Al-Jadaan. So far, the statements of Saudi Arabia have been considered rhetoric, and none of the above considerations (acceptance of the Yuan for oil, accession to Brics) has been realized.
What do you think Saudi Arabia means from the US dollar for the future of global trade and finance? Share your thoughts on this topic in the comment area below.
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