I have been writing on the death of the petrodollar system for some time now…
This system which has now been in place for decades ensures international demand for the U.S. Dollar by pricing all oil trading in terms of Dollars as opposed to some other currency.
The rise of cryptocurrencies threatens this system from one side, while geopolitical tensions and new alliances threaten it from the other…
According to the latest reports, Saudi Arabia is considering pricing oil in Chinese Yuan as opposed to USD.
Reactions to the proposal from around the world all seem to be saying the same thing:
Saudi Arabia seriously considering to trade oil with China in yuan — If that happens, that will be the beginning of the end of dollar’s hegemony!
— Ashok Swain (@ashoswai) March 15, 2022
THE DEATH OF THE PETRODOLLAR
The ultimate game-changer.
And it came much sooner than we all thought.
Saudi Arabia is considering accepting yuan – and not US dollars – for selling oil to China.
Translation: China told them this is the new groove.
Fasten your seat belts.
— Pepe Escobar (@RealPepeEscobar) March 15, 2022
According to The Wall Street Journal:
The talks with China over yuan-priced oil contracts have been off and on for six years but have accelerated this year as the Saudis have grown increasingly unhappy with decades-old U.S. security commitments to defend the kingdom, the people said.
The Saudis are angry over the U.S.’s lack of support for their intervention in the Yemen civil war, and over the Biden administration’s attempt to strike a deal with Iran over its nuclear program. Saudi officials have said they were shocked by the precipitous U.S. withdrawal from Afghanistan last year.
Breaking: Saudi Arabia is considering settling oil sales to China not in US Dollars but in Chinese Yuan.
The decline of US hegemony is in full swing. This is exactly what we meant by the West "shooting itself in the foot". This is just the beginning.
— Richard Medhurst (@richimedhurst) March 15, 2022
It’s only logical for the largest oil exporter 🇸🇦 to sell its oil to the largest oil importer 🇨🇳 in Chinese Yuan.
China is by far the largest trading nation on planet Earth; Saudi Arabia is one of the top 20 economies & 2nd largest holder of oil reserves.
Win-win partnership.
— Ebrahim Hashem 李思瑞 إبراهيم هاشم (@EbrahimHashem) March 15, 2022
CoinDesk explains:
China is a buyer of more than 25% of Saudi Arabia’s exported oil, according to the story.
The news would seemingly be of interest to the bitcoin (BTC) and gold markets, but, for now, there’s little reaction,
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