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Saudi Arabia open to abandoning the dollar for oil transactions

According to Bloomberg, Saudi Arabia is open to discussions on trade in currencies other than the US dollar, according to the kingdom's finance minister. “There is no problem discussing how to regulate our trade deals, whether it's the US dollar, whether it's the euro, whether it's the Saudi riyal,” Mohammed Al-Jadaan told Bloomberg TV on Tuesday. in an interview in Davos. "I don't think we are discounting or excluding any discussion that could help improve trade in the world," Al-Jadaan said.

Then Al-Jadaan confirmed the Kingdom's goal of strengthening relations with the most important trading partners, especially China: "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 it with Europe and other countries that are willing and able to work with us,” Al-Jadaan said.

Saudi Arabia is also working with multilateral institutions to provide financial support to Pakistan, Turkey and Egypt, as part of bestowing the kingdom on nations it deems "vulnerable," Al-Jadaan said. . "We are also supplying oil and derivatives to support their energy needs", confirming how the Kingdom's policy is also establishing itself as a global influence.

This interview confirms how Saudi Arabia is progressively setting aside the dollar as an instrument for regulating the oil market and this path is obviously being followed by the other Gulf countries. A situation that can put the greenback in great difficulty, but it is almost obvious, when the USA is no longer a market for Saudi oil. Obviously the first country to take advantage of this trend will be China, which will gradually be able to use the Yuan to pay for its oil supplies, increasingly tightening the friendly ties between Beijing and Riyadh strengthened by Xi Jinping's recent extremely profitable visit to the Kingdom.


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The article Saudi Arabia open to abandoning the dollar for oil transactions comes from Scenari Economics .


This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/larabia-saudita-aperta-ad-abbandonare-il-dollaro-per-le-transazioni-petrolifere/ on Thu, 19 Jan 2023 09:00:14 +0000.