{"id":16642,"date":"2023-01-19T15:33:58","date_gmt":"2023-01-19T15:33:58","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/saudi-arabia-open-to-trading-in-currencies-other-than-us-dollar-signaling-a-shift-toward-de-dollarization-economics-bitcoin-news\/"},"modified":"2023-01-19T15:33:58","modified_gmt":"2023-01-19T15:33:58","slug":"saudi-arabia-open-to-trading-in-currencies-other-than-us-dollar-signaling-a-shift-toward-de-dollarization-economics-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/saudi-arabia-open-to-trading-in-currencies-other-than-us-dollar-signaling-a-shift-toward-de-dollarization-economics-bitcoin-news\/","title":{"rendered":"Saudi Arabia Open to Trading in Currencies Other Than US Dollar, Signaling a Shift Toward De-Dollarization \u2013 Economics Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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After a 48-year relationship solely with the U.S. dollar, Saudi Arabia\u2019s Finance Minister, Mohammed Al-Jadaan, said the kingdom is open to trading in currencies other than the U.S. dollar. The statements follow China\u2019s president, Xi Jinping, urging the Gulf monarchs to accept yuan for oil, and Riyadh officials saying last March the country would consider accepting the Chinese currency.<\/strong><\/p>\n

Saudi Arabia\u2019s Move Away from US Dollar Signals Changing Economic Landscape<\/h2>\n

This week, the world\u2019s elite met in the Swiss Alpine town of Davos for the 2023 World Economic Forum, and Saudi Arabia\u2019s Finance Minister, Mohammed Al-Jadaan, spoke to Bloomberg TV on Tuesday. Al-Jadaan stunned reporters<\/a> when he said Saudi Arabia is open to trading in other currencies. \u201cThere are no issues with discussing how we settle our trade arrangements, whether it\u2019s in the U.S. dollar, the euro, or the Saudi riyal,\u201d Al-Jadaan said. The finance minister added:<\/p>\n

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I don\u2019t think we are waving away or ruling out any discussion that will help improve the trade around the world.<\/p>\n<\/blockquote>\n

The Saudi Arabian finance minister\u2019s statements have been interpreted as another step toward de-dollarization. To understand why Al-Jadaan\u2019s comments are significant, one must go back in time<\/a>. In 1971, the U.S. government and President Richard Nixon ended the gold standard, and over the next three years, oil prices skyrocketed<\/a>. In 1973 and 1974, federal officials and U.S. Treasury Secretary William Simon<\/a> visited with monarchs in Riyadh.<\/p>\n

\"Saudi
\u201cOur aim is really to bridge the divide, our aim is to be a force of communication and we are encouraging communication, whether it is China, the U.S. or others,\u201d Mohammed Al-Jadaan remarked at the World Economic Forum in Davos.<\/figcaption><\/figure>\n

At that time, the petro-dollar<\/a> was born as Simon convinced the Saudis to sell oil in U.S. dollars and instructed them to purchase Treasury bonds. In addition to the Saudis, all of the Organization of the Petroleum Exporting Countries (OPEC) followed suit and priced their oil in U.S. dollars. Many believe this has given the U.S. an unfair advantage and that it has been the root cause of many of the wars the U.S. has been involved in over the last few decades. In more recent times, the U.S. dollar\u2019s hegemony has been seemingly threatened<\/a>.<\/p>\n

Growing Saudi Tensions With U.S.<\/h2>\n

For instance, Saudi Arabia has recently been considering<\/a> joining the BRICS nations, which include Brazil, Russia, India, China, and South Africa. At the China-GCC summit, China\u2019s President Xi Jinping urged Saudi Arabia to start accepting yuan for barrels of oil. Moreover, last March, Saudi Arabia said<\/a> it was thinking about accepting the Chinese currency for oil. The Wall Street Journal noted that the Saudis were not pleased<\/a> with U.S. President Biden\u2019s dealings with Iran over the country\u2019s nuclear program.<\/p>\n

In October 2022, reports<\/a> further claimed that members of the Saudi government, including Crown Prince Mohammed bin Salman, privately mocked Biden\u2019s mental acuity. Al-Jadaan detailed on Tuesday that the leaders in Saudi Arabia have a good bond with China and other nations.<\/p>\n

\u201cWe enjoy a very strategic relationship with China and we enjoy that same strategic relationship with other nations, including the U.S. and we want to develop that with Europe and other countries who are willing and able to work with us,\u201d Al-Jadaan remarked. So far, Saudi Arabia\u2019s statements have been considered rhetoric, and none of the aforementioned considerations (accepting yuan for oil, joining BRICS) has come to fruition.<\/p>\n

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\nTags in this story
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alternative currencies<\/a>, Bloomberg TV<\/a>, Brazil<\/a>, brics<\/a>, China<\/a>, crown prince Mohammed bin Salman<\/a>, Currency<\/a>, Currency diversification<\/a>, currency substitution<\/a>, Davos<\/a>, de-dollarization<\/a>, decoupling<\/a>, dollar substitution<\/a>, Finance Minister<\/a>, Gulf monarchs<\/a>, hegemony<\/a>, India<\/a>, Joe Biden<\/a>, Mohammed Al-Jadaan<\/a>, monetary independence<\/a>, monetary policy autonomy<\/a>, monetary system reform<\/a>, OIL<\/a>, opec<\/a>, petrodollar<\/a>, Richard Nixon<\/a>, Russia<\/a>, Saudi Arabia<\/a>, Saudis<\/a>, South Africa<\/a>, sovereignty<\/a>, strategic relationship<\/a>, trade<\/a>, Treasury Bonds<\/a>, US Dollar<\/a>, William Simon<\/a>, World Economic Forum<\/a>, Xi Jinping<\/a>, Yuan<\/a><\/div>\n<\/div>\n

What do you think the possible move away from the U.S. dollar by Saudi Arabia means for the future of global trade and finance? Let us know your thoughts about this subject in the comments section below.<\/strong><\/em><\/p>\n

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\nJamie Redman <\/h6>\n

\nJamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.

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Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n

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Disclaimer<\/strong>: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com<\/a> does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.<\/p>\n<\/div>\n

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