Politics

Saudi Arabia Weighs Accepting Yuan Instead Of Dollars In Oil Sales With China

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The U. S. dollar may be on its way out as the global reserve currency.

Saudi Arabia is actively engaging in negotiations with Chinese officials to price oil sales to China in yuan instead of the U. S. dollar, the Wall Street Journal reported.

If the two countries decide to conduct business using the Chinese yuan instead of the U. S. dollar, this could mean trouble for America’s dominance as the global economic hegemon.

Reportedly, the Saudi talks with China have been off and on for six years but have recently begun to accelerate as Saudi leadership grows increasingly discontented with American security commitments to defend the country.

The Saudis are unhappy with the lack of American support for their intervention in the ongoing Yemen civil war and over the Biden administration’s renewed attempts to strike a deal with Iran over its nuclear program.

Saudi officials are also reportedly uncomfortable with the Biden administration’s ham-fisted withdrawal from Afghanistan last year.

China currently buys more than 25% of the oil exported from Saudi Arabia. Should these transactions be conducted in yuan instead of dollars, those sales would boost the standing of China’s currency and diminish the standing of the dollar.

Around 80% of global oil sales are transacted in dollars. Saudi Arabia exports roughly 6.2 million barrels of crude oil a day. If the Saudis price even a fraction of this in something other than the dollar, it would mark a profound shi… (Read more)

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