Riyadh (Agencies): In a significant shift in global economic dynamics, Saudi Arabia is reportedly in talks to use the Chinese yuan instead of the US dollar for oil payments. This move comes as part of Saudi Arabia’s broader strategy to strengthen economic ties with China, the world’s largest oil importer.
For nearly 50 years, Saudi Arabia has conducted its oil trade exclusively in US dollars. However, recent geopolitical tensions and economic considerations have prompted the Kingdom to explore alternatives. The shift towards the yuan is seen as a step to diversify its economic partnerships and reduce reliance on the US dollar.
China has been actively promoting the internationalization of the yuan, and this potential deal with Saudi Arabia could significantly bolster its currency’s global standing. The move is also expected to have far-reaching implications for the global oil market and the dominance of the US dollar in international trade.
This development follows a series of high-level meetings between Saudi and Chinese officials, underscoring the growing economic and strategic partnership between the two nations.