Comment Below
minute read
ADVERTISEMENT
The oil-rich kingdom of Saudia Arabia is now open for business in currencies other than the US dollar. This after a recent visit to the nation by Chinese leader Xi Jinping, who encouraged leaders there to accept payment for oil in yuan, Chinese currency, as opposed to simply US dollars, which has been customary.
Saudi Finance Minister Mohammed al-Jadaan said "There are no issues with discussing how we settle our trade arrangements, whether it is in the US dollar, whether it is the euro, whether it is the Saudi riyal."
He said this during an interview with Bloomberg News in Davos, where the World Economic Forum's Annual Meeting is taking place.
This leads to speculation that yuan may be the next currency that will be accepted by the Saudis in exchange for their oil.
It has been decades since Saudi Arabia has strictly used US dollars, the world's most stable currency, to do business. They have pegged their currency to the value of the dollar, as have many other nations. The international price of oil, also, is in US dollars.
The US petro-dollar is a major contributor to the wealth of the United States, as trade in oil has been entirely conducted in the currency of the US. While Chinese sales account for more than a quarter of Saudi Arabia's oil exports, China has had to purchase that oil in American dollars.
The value of the dollar could face a decline if yuan is also able to be used to purchase the energy source that literally fuels the world.
The Biden White House has been moving away from fossil fuels for ethical reasons, despite new energy sources being unable to bear the weight of America's energy needs. Biden has declared that the US should move away from dependence on foreign oil, meanwhile, Los Angeles has banned all new oil wells and vowed to phase out existing ones.
Biden has shut down oil pipelines, stated his intention to phase out the coal industry, and added extra insentives for Americans to move to electric, battery powered energy. Biden has been depleting American oil reserves, as well.
Saudi Finance Minister Mohammed al-Jadaan said "There are no issues with discussing how we settle our trade arrangements, whether it is in the US dollar, whether it is the euro, whether it is the Saudi riyal."
He said this during an interview with Bloomberg News in Davos, where the World Economic Forum's Annual Meeting is taking place.
This leads to speculation that yuan may be the next currency that will be accepted by the Saudis in exchange for their oil.
It has been decades since Saudi Arabia has strictly used US dollars, the world's most stable currency, to do business. They have pegged their currency to the value of the dollar, as have many other nations. The international price of oil, also, is in US dollars.
The US petro-dollar is a major contributor to the wealth of the United States, as trade in oil has been entirely conducted in the currency of the US. While Chinese sales account for more than a quarter of Saudi Arabia's oil exports, China has had to purchase that oil in American dollars.
The value of the dollar could face a decline if yuan is also able to be used to purchase the energy source that literally fuels the world.
The Biden White House has been moving away from fossil fuels for ethical reasons, despite new energy sources being unable to bear the weight of America's energy needs. Biden has declared that the US should move away from dependence on foreign oil, meanwhile, Los Angeles has banned all new oil wells and vowed to phase out existing ones.
Biden has shut down oil pipelines, stated his intention to phase out the coal industry, and added extra insentives for Americans to move to electric, battery powered energy. Biden has been depleting American oil reserves, as well.
ADVERTISEMENT
ADVERTISEMENT
Join and support independent free thinkers!
We’re independent and can’t be cancelled. The establishment media is increasingly dedicated to divisive cancel culture, corporate wokeism, and political correctness, all while covering up corruption from the corridors of power. The need for fact-based journalism and thoughtful analysis has never been greater. When you support The Post Millennial, you support freedom of the press at a time when it's under direct attack. Join the ranks of independent, free thinkers by supporting us today for as little as $1.
Remind me next month
To find out what personal data we collect and how we use it, please visit our Privacy Policy
