Between The Dragon And The Cowboy

In an interview with the South China Morning Post, Saudi minister of industry and Mineral Resources Bandar Al-khorayef said that the kingdom “will always try new things and will remain open to new ideas,” stressing that the kingdom will work not to “confuse politics and trade,” adding that the Saudi authorities are open to the application of new economic tools, including the use of petroyuan in mutual settlements.
The continuation of the single monetary pole also contributed to significantly strengthening the military and political pole and did not serve the international interest, and enabled the United States of America to impose sanctions from the petrodollar group on many countries around the world, and the continued dominance of the dollar is not a destiny on the world, and it can be replaced by any currency whenever conditions mature.

That is why countries ‘ efforts to find an alternative system are converging, but the issue of switching from the petrodollar to the petroyuan or any alternative international system is not an easy issue, it is a transformation that requires difficult International Labor.

It also seems that Saudi Arabia does not want to pay additional costs during its trade exchange with China, as well as many members of the OPEC + group and the OPEC group, and Saudi Arabia’s role is important in undermining the dominance of the petrodollar because of its weight in the two groups, and all you need is a responsible decision and take responsibility for it.

Indicators of the use of international currencies indicate that the use of the yuan in the oil and gas market is still limited and does not significantly affect the dollar, the percentage of the yuan held by the world’s central banks is still very small, and it may take years before the yuan grows to the level of competition with the US dollar, and the yuan does not have flexibility or freedom to convert, and its debt market is not deep and does not have sufficient liquidity to challenge any of the other major international currencies, such as the euro and the Japanese yen, not to mention the dollar, but China’s steps would worry the United States, which is closely following the Chinese expansion of its traditional areas of influence, but if Dole The Gulf, especially Saudi Arabia, using the yuan in intra – trade with China will make a difference in the global oil markets, and will give the Chinese yuan a new spirit and strength.

There is no doubt that if Saudi Arabia, the world’s largest oil exporter with an average of 7.5 million barrels per day, abandons oil pricing in dollars and turns to the yuan, and Qatar does the same with its liquefied gas, this will be a blow to the dollar that threatens to break its dominance on the international currency market, and the seriousness of this lies in the fact that China is the largest importer of oil and gas in the world and the second largest consumer of them, while Saudi Arabia is its largest exporter, and Qatar is the second largest exporter of liquefied gas.