Saudi Arabia is ready to trade in currencies other than the U.S. dollar.
“Saudi officials announced this week they are ready to to trade in currencies other than the U.S. dollar in a huge blow to the American economy.
Saudi Arabia announced the move following a December meeting with China’s President Xi Jinping. The kingdom is ready to trade in yuan instead of the dollar in trade exchanges.
Russia Today reported:
Saudi Arabia is ready to discuss trading in currencies other than the U.S. dollar, according to the Kingdom’s finance minister Mohammed Al-Jadaan.
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| Saudi Arabia Minister of Finance, Mohamed Al-Jadaan |
Al-Jadaan’s comments come a month after China’s President Xi Jinping said that Beijing is ready to make energy purchases in yuan instead of the U.S. dollar in trade exchanges with members of the Gulf Cooperation Council (GCC). China’s leader highlighted the necessity of the shift while speaking at a Chinese-Arab summit hosted by Saudi Arabia earlier this week.
‘There are no issues with discussing how we settle our trade arrangements, whether it is in U.S. dollar, in euro or in Saudi riyal’, Al-Jadaan said on Tuesday during an interview with Bloomberg in Davos, Switzerland.
The oil-rich kingdom is seeking to deepen its ties with vital trade partners, including China. The readiness for talks on the issue expressed by Riyadh may signal that the world’s biggest oil exporter is open to diversifying away from the U.S. dollar after decades of pricing crude exports in the U.S. currency. The riyal, the Saudi national currency, has been pegged to the greenback, too”. -Jim Hoft, Gateway Pundit
If the petrodollar is the nucleus of American hegemony, Saudi Arabia would be considered the closest thing to being the linchpin of the petrodollar system, and now they’re out.
Pax Americana being all but dead and the United States being a classic example of an empire in decline is why Saudi Arabia feels confident enough to take this calculated risk knowing they have the military backing of the BRICS nations.
At any rate, the global economy is going to bifurcate into two, and the previously dominant Anglosphere economy is going to be the smaller of the two.