![]() The Kingdom is a key pillar of China‘s Belt and Road Initiative and ranks first among the top three countries globally in Chinese construction projects.Ī move to conduct oil transactions with China in the yuan would represent a profound shift in the oil market. China is the Kingdom’s largest trading partner, mainly because it buys 25% of all Saudi Arabia’s oil exports. In the Arab region, economic ties between Beijing and Riyadh have grown exponentially in recent decades. Beijing’s investments include stakes in New York-based financial institutions. ![]() China’s dominance of global financial markets continues dangerously. Suffice it to say that the United States of America (itself) is indebted to the People’s Republic of China, so the US-China trade war erupted under former President Donald Trump, or the so-called “ tariff battle” and the imposition of investment restrictions between the two countries. This controls worldwide politics, markets, and exchanges. ![]() It is evident in the global conflict arena that Beijing is positioning itself to inherit Washington as a pivotal pole. Saudi and Chinese officials are considering pricing some oil sales in the Chinese yuan instead of the US dollar following the US-Russia confrontation in Ukraine. As the global order shifts, monitoring these developments and their implications for international relations, economics, and security will be imperative. ![]() It remains to be seen how this will play out, and much will depend on a range of factors, including the intentions and actions of both Saudi Arabia and China, as well as the responses of other key regional actors, including the United States. If this move happens, it could have far-reaching implications for the US dollar’s status as the dominant global currency, as well as for US-Saudi relations and broader regional dynamics in the Middle East. Oil transactions between Saudi Arabia and China could be denominated in the Chinese yuan, a significant development in the evolving international economic and geopolitical landscape. Listen to this article Can Saudi Arabia switch from the US dollar to the Chinese Yuan? (Credits: Image by Thomas Breher from Pixabay) Geopolitical Report ISSN 2785-2598 Volume 30 Issue 4 ![]()
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