Saudi Arabia is open to trading in currencies other than the US dollar, indicating a shift towards de-dollarization
Saudi Arabia’s Finance Minister Mohammed Al-Jadaan said that the kingdom is willing to trade in currencies other than the US dollar and is open to doing business in other currencies, after 48 years of close ties with the US dollar. . This statement speaks in favor of Chinese President Xi Jinping who clearly urges the kings of empty to support their currency for oil and at the same time says that you should also consider our currency and Think about its benefits. Riyadh officials have said that they will also consider accepting Chinese currency in the country, and certainly based on their statement last March that China’s currency will also be considered. Saudi Arabia’s move away from US dollar signs certainly signals that this week, the world’s elite met in the Swiss Alpine city of Davos for the 2030 World Economic Forum, as well as Saudi Arabia’s finance minister Had a conversation with Blue Square TV on Tuesday and in that Jadaan said that definitely he wants to say for his country that Saudi Arabia is open to do business in all types of currencies and by saying that he Surprised everyone. He further said that it doesn’t make sense to have any problem or discussion on how we see our trade system or how our trade system is solved by us whether it is US dollar, or Be it Euro of Japan or Riyal of Saudi Arabia. They certainly don’t understand, according to him, that he is avoiding or dismissing any discussion that would improve and help trade around the world. The statements of Saudi Arabia’s finance minister have been interpreted as another step towards de-dollarization. To explain that of course jadaan’s comments are important because if we go back to 1971, the US government and President Richard Nixon ended the gold standard and oil prices skyrocketed over the next 3 years While in 1973 and 1974 federal officials and US Treasury Secretary William Simon visited with the monarchs in Riyadh. It was at this time that the petrodollar was born as Simon persuaded the Saudis to sell oil for US dollars and instructed them to buy Treasury bonds. Apart from Saudi Arabia, all of the Organization of the Petroleum Exporting Countries, which we call OPEC, followed suit and fixed the price of their oil in US dollars. Many believe this has given the US an unfair advantage and has been the root cause of the wars with the US over the past few decades. In the recent past it has been seen that the ownership of the US dollar is feeling threatened because of the simple fact that Saudi Arabia is also considering joining the BRICS recently. This includes Brazil, Russia, India, China and South Africa, of course. At the China-GCC summit, Chinese President Xi Jinping urged Saudi Arabia to buy Chinese currency for barrels of oil, and in addition, last March Saudi Arabia said it was open to accepting Chinese currency for oil. Was thinking about The Wall Street general noted that Saudi Arabia was not happy with US President Joe Biden’s dealings with Iran over the country’s nuclear program. In October 2022, the report further claimed that in addition to Crown Prince Mohammed bin Salman, the Saudi government had also privately mocked Joe Biden’s mental state, and Jadaan on Tuesday elaborated that the Saudi Arabian leaders’ China and Has great relations with other countries and remarked that he enjoys another strategic relationship with China and is strong because of the same relationship with other countries including the US and now he wants to extend it to Europe and other countries as well. want to develop or are willing to develop those who are willing to work with them and will play an important role in working with them as well. Of course, Saudi Arabia’s statements so far have been rhetoric and none of it appears to have included the idea of accepting Chinese currency for oil or joining BRICS. There is no such official confirmation yet that Saudi Arabia will aseptic of China’s currency or will leave the dollar because of course this situation is not clear but we can say that India also took important steps in this direction. And Prime Minister Narendra Modi also wants that more and more rupee currency should be developed with international cooperation and it should be used in more and more imports. We can know that Saudi Arabia and other countries which start exporting oil are definitely considering the possibility of expanding their business to other countries as well and with this they want more and more countries to be part of their oil. enter into trade agreements with them and build meaningful partnerships with them so that they too can get a chance to work with many countries and maybe China and other countries in the future Relations with Europe countries can be strengthened, although no clear indication has been received so far.