The day before it became known that official Beijing and Riyadh signed the largest energy contract in recent times. According to official information, the document provides for the import of Saudi oil to China for a total amount of $7 billion. The peculiarity of the agreement is that the PRC will make all payments for the supplied carriers exclusively in its national currency – the yuan. According to experts, this transaction will cause a significant blow to the image of the American dollar on the world market.
This deal is also called historic. And not at all because of its scale: Saudi Arabia’s “oil turnover” amounts to hundreds of billions of dollars. This time, the sensational thing about the situation is that due to the agreement with Beijing, Riyadh has actually cut the volume of carrier supplies to the United States. But that’s not all – given the fact that the corresponding transactions on stock exchanges are paid exclusively in yuan, the Chinese currency has once again entered the rankings of the most “traditional” monetary units in the world.
Let us recall that earlier, in addition to China itself, Russia, India, Brazil, Kazakhstan and South Africa spoke in favor of the yuan as the main world currency. Saudi Arabia, with its export capabilities, has only strengthened the position of the Chinese financial system.
Against this background, business circles are already talking about the real danger of leveling the dollar. Moreover, the most “hot heads” even insist on conspiracy theories. However, there are also those who explain this extremely simply. “The US dollar is gradually exhausting itself in individual transactions,” said American financial expert Robert Osmond in a special commentary for EURO-ATLANTIC UKRAINE. “An alternative is needed to the entire dollar flow that, figuratively speaking, “drowned” the international monetary system. This alternative became yuan”. As Osmond emphasized, in just a few years, the Chinese currency, if it does not displace the US dollar, will seriously “push” it in certain segments.”
It is difficult to disagree with the last statement. Especially if you remember that China, which imported $65 billion worth of oil from Asia in 2022, plans to exceed this figure next year. It goes without saying that payment for “black gold” will be made in yuan.
