The petrodollar mayhem has now intensified after the Saudi Arabian regime decided to foster the multipolar currency narrative. With the regime’s decision to embrace US dollar alternatives, speculators have amped up hopes, vying for new currency concepts to take hold and shape the evergreen oil trading mechanisms. In this race, the Chinese Yuan can be the biggest game-changer, provided that the regime’s decision to embrace Yuan holistically catches more fire and pace.
Also Read: Petrodollar: Saudi Arabia Ditching the Dollar Will Affect 3 US Sectors
The New Dollar For Saudi Arabia: Chinese Yuan?
With the recent petrodollar agreement lapse, the speculatory bandwagon is running amok on social media. With claims of new currency contenders gaining strength, speculators are gunning to place their bets on the “latest” currency that will make the most out of this petrodollar agreement lapse.
As Saudi Arabia announced the idea of embracing the multipolar currency narrative, the world is now viewing the Yuan as the apt contender that is capable of directly challenging US dollar supremacy. With China actively engaged with the BRICS alliance alongside expediting efforts to derail the USD, it could make a grand entrance in this game of changing currency dynamics.
The enmity between the US and Saudi Arabia has long been a contentious matter, which has now gained considerable strength. President Joe Biden’s growing hostility towards Crown Prince Mohamad Bin Salman, as well as putting allegations on Salman for murdering Saudi dissident Jamal Khashoggi, are a few instances that have soiled Saudi Arabia’s relationship with the US.
In the current scenario, the US continues to weaponize the USD, by imposing sanctions on several nations. This development has further aggravated the case. The weaponization of the USD might have played a crucial role in Saudi’s decision to not renew the petrodollar agreement.
Chinese Yuan: The New King?
The element of friendship plays a pivotal role in fostering international strength and resilience. With the US’s burgeoning power display, Saudi Arabia has found a “new friend” amid the changing world narratives. China, being the largest oil exporter to Saudi Arabia, now stands in a congenial position that can reverse the age-long currency dynamics, consolidating for long in the petrodollar space.
Yuan has already familiarized itself with the Saudi Arabian currency methods. It’s been a while since the Saudi Arabian regime started trading in Chinese Yuan.
Also Read: Saudi Arabia Ditches US Dollar, Will Settle Oil Payments in Yuan, Euro
With US dollar debt uprisings and constant accusations of the US weaponizing its currency, the Yuan could gain significant strength as the new currency petrodollar alternative. With over 80% of the world’s oil being transacted in dollars, the demise of the USD, coupled with the petrodollar collapse, has the power to considerably boost the Yuan. It will only happen if the regime selects the latter as the primary currency to trade with, from a wide flock vying for the regime’s attention and grace