The Saudis are looking towards the Chinese these days:
How U.S.-Saudi Relations Reached the Breaking Point
Israel Adds Chinese RMB Yuan To Its Central Bank Holdings, Reduces US Dollar and Euro Assets
https://www.silkroadbriefing.com/news/2022/04/21/israel-adds…
The euro and sterling are linked to the US dollar and as those dollars come home the inflation in these areas will get worse and worse.
Possible.
Two parts to the petrol dollar. One, SA prices oil in USD. Two, the US protects the Kingdom. Is China or Russia going to fill that gap for them?
Two parts to the petrol dollar. One, SA prices oil in USD. Two, the US protects the Kingdom. Is China or Russia going to fill that gap for them?
The protection part maybe, in which case they are welcome to it. But the reality is that one of the main reasons the dollar is the reserve currency is because…the dollar is the reserve currency. Nobody outside Saudi Arabia wants riyals. So transactions have to be in some other currency. Since everyone already uses the dollar, that’s the currency everybody wants to use. The yuan, btw, is pegged to the dollar. So you don’t unshackle yourself from the dollar by going that route.
Nobody outside Saudi Arabia wants riyals. So transactions have to be in some other currency.
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Israel seems to like riyals, rubles, and yuans.
Jaak