Saudi Arabia-China alliance that gave America a shock..!?

While the US dollar continues to dominate internationally, many countries in Asia have come to the conclusion that they trade in their domestic currency. This will help countries that rely heavily on imports to cushion the impact of the dollar. Recently, a new president was elected in Argentina, a country famous for football, and he announced before the election that he would stop using the country's peso and replace it with the dollar. This is called dollarization. Currently, Asian countries are undergoing de-dollarization. china and saudi arabia will soon sign a currency swap agreement worth about 7 billion dollars. The China-Saudi Arabia currency swap agreement is important in efforts by Asian countries that have decided not to rely solely on the dollar for international trade.
A maximum of 50 billion yuan or 26 billion riyals can be exchanged under the three-year agreement between china and Saudi Arabia. Although small compared to the two countries' trade volumes...the deal would be huge because saudi arabia is the world's top oil exporter and most global oil trade is conducted in dollars. And this is seen as the beginning. Although russia is China's top oil supplier, china imported $65 billion worth of Saudi crude in 2022, according to Chinese customs trade data. This accounts for approximately 83% of Saudi Arabia's total exports to China. At the same time, it is seen as important in China's attempt to reduce the dominance of the dollar and create a position where the Chinese yuan can be used as an alternative currency to the dollar in international trade. This is China's master plan against America. The renminbi accounts for about 25 percent of Russia's total international trade (excluding China), which was the first to introduce an alternative currency to the dollar.
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Sowmiya Sriram

21/11/2023 05:49 PM