Saudi Arabia Could Aid BRICS’ De-Dollarization Initiative: Here’s how

Sahana Kiran
Source – Medium

De-dollarization is currently a prominent topic of discussion across the globe. Many nations have stepped forward to reduce their reliance on the dollar and implement an alternative financial system. This initiative has been led by the BRICS nations, which are Brazil, Russia, India, China, and South Africa. It appears that other countries are supposedly going to support this action, and Saudi Arabia could be the first to do so.

A professor from the University of Tehran who is also a representative of Iran’s Presidential Delegation to China reportedly stated that the dollar is “unreliable and dangerous.” In an interview with a Chinese news outlet, Professor Mohammad Marandi suggested that the dollar has been used as a weapon by the American government against a number of nations. Consequently, he noted that de-dollarization is crucial for the international community. He further added,

“Therefore, countries like China, Iran, and Russia among many others, need to move away from the dollar so that the U.S. cannot use it as a weapon against them … The U.S. should not be allowed to use the dollar to put pressure on other countries.”

Here’s why Saudi Arabia could support BRICS

Marandi seemed to have his bets on Iran as well as Saudi Arabia. He believes that both these nations will contribute to the de-dollarization movement. Iran has already been selling a significant amount of petroleum by employing currencies other than the dollar. Furthermore, speaking about Saudi Arabia he said,

“I think for Saudi Arabia, ultimately it will be in its best interests to move away from the dollar as well in order to make sure that it is not vulnerable or less vulnerable to the U.S. If the rapprochement continues, then I think the chances for Saudi Arabia to join the camp of de-dollarization increases substantially.

Earlier, the Crown Prince of Saudi Arabia Mohammed Bin Salman said that he is not interested in “pleasing” the U.S. The U.S. has emerged as a superpower following the dollar dependency of the entire globe. If the BRICS are successful in holding up their de-dollarization initiative, the U.S. could certainly lose its grip. De-dollarization has the potential to change the global financial system’s power dynamics, weakening the US’s hegemony on the system and increase the influence of developing economies.