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Page added on March 20, 2022
Saudi Arabia and China are looking to ditch the dollar in a new oil deal
- Reports of a Saudi oil deal priced in China’s currency could signal unease with reliance on the US dollar, according to an economist.
- “A potential deal in yuan is a sign that the world is looking for some counterweight to the US dollar,” Aleksandar Tomic told Insider.
- China plays an outsized role in Africa, which is the most likely place where it could displace the dollar, he said.
A potential yuan-based oil deal between Saudi Arabia and China could signal more unease with reliance on the US dollar, while also serving as a preview of how Beijing could advance its currency in other parts of the world.
The Wall Street Journal reported recently that Saudi Arabia is in talks to sell oil to China and be paid in yuan, after trading crude exclusively in dollars for nearly 50 years. Both countries could benefit from a demotion of the dollar’s status on the world stage, according to Aleksandar Tomic, an economist, professor and associate dean at Boston College.
“While any deal would be symbolic, the Chinese are not alone in the search for a non-dollar reserve currency,” Tomic told Insider. “Other countries’ need for dollars exposes them to the US financial sector, and consequently gives the US political leverage.”
Some analysts have downplayed the chances of a yuan deal, pointing out that the Saudi riyal is pegged to the dollar, helping shield its economy from volatility .
But the effectiveness of the West’s sanctions against Russia has been a wake-up call for countries seeking to reduce their reliance on the US, while other regimes worry that they could be next if they cross Washington, Tomic said.
“A potential deal in yuan is a sign that the world is looking for some counterweight to the US dollar,” he said.
One reason Saudi Arabia is considering an oil deal in yuan is because it would create exposure to a currency other than the dollar, and affords the country a yuan-based hedge. Another factor could be the Saudis don’t anticipate the dollar to be as stable moving forward, especially if the US increases its money supply in response to economic challenges, Tomic said.
Meanwhile, China has long pushed for the yuan to supplant the dollar, and the collapse of major financial institutions in Russia means chances are higher now than ever for a sea change, he said. Plus, the international response to Russia’s invasion of Ukraine also looms.
“An extreme view would be that it reduces China’s vulnerability to sanctions that the West may impose should China do something that the US and its allies oppose,” Tomic added.
But two things that must happen for China’s yuan to establish itself as a reserve currency. First, global faith in the dollar would have to wane. This could happen if the Federal Reserve fails to get inflation under control, or if it veers from its usual predictability, Tomic said.
Second, China would have to prove the long-term stability of the yuan to win the trust of other nations. But China devalues its currency occasionally to boost exports, and countries won’t want to hold a currency like that, he noted. So Beijing would have to commit to more responsible policy.
Still, China maintains global ambitions for the yuan, and Africa is the most likely place where it could displace the dollar, Tomic said. China plays an outsized role in African economies as the continent’s largest bilateral creditor and source of foreign investment.
And China already has considerable infrastructure in place in Africa, which isn’t as contested a market as Europe is, he explained.
But for China to supplant the dollar as a global reserve currency, its economic standing would have to rise while the US’s fell.
“If the US doesn’t do anything unpredictable, then other countries will continue to trust its currency,” Tomic said. “Challenges to the dollar have come before, but none have taken hold because when things turn volatile, the US tends to be stable. So the dollar persists.”
10 Comments on "Saudi Arabia and China are looking to ditch the dollar in a new oil deal"
Theedrich on Sun, 20th Mar 2022 4:44 pm
Nature makes predators to prevent overshoot. This is the story of evolution. But America hates — hates — evolution. Nature infuses male animals from crabs to humans with more testosterone than the females in order to make them fight for access to females. It causes different species and subspecies to compete for access to resources, and rewards the losers with death and extinction. In addition to this, there are natural calamities such as comets striking the earth and extinguishing vast percentages of life on our planet, catastrophes which take millions of years to recover from.
Life is tough. And it is even tougher if you’re stupid. In particular, if you’re more stupid than your competitor. That is the rule Nature follows to increase intelligence and/or ecological adaptability in various species. It is what led to the rise of homo sapiens. And ignoring it may shortly lead to its extinction.
These rigid laws are not “accidental.” They are the expression of a divine —yes, divine — Intelligence behind the creation and evolution of the cosmos. Snippets and tiny glimpses of this Intelligence are seen in what in common discourse is mistakenly called the “paranormal”. In fact, the Intelligence is not “para” (Greek παρά “from the side of, from; by the side of, at the house of”), but fully “normal,” even though we homines sapientes can perceive only the tiniest part of its effects and manifestations. The absurd claims of the official organized religions, with their anthropomorphic portrayals and political accommodations, to know the nature of this Intelligence are the ultimate in fake news, no matter how much those organizations have contributed to the rise of civilization. Understanding reality is verboten to most people, whether religionists or scientists. The latter are socially and economically constrained by their various niches from admitting what even they themselves sometimes witness in person. The religionists feel compelled to interpret everything they do not understand as the work of some monstrous spiritual dark force or, in the case of a beneficial “miracle,” as proof of their preconceptions.
In the last century or so, we have had two major World Wars and other warnings from Nature. They amounted to an attempt by her to re-impose her ecological-evolutionary plan on the planet, but were frustrated by the Anglosphere and its self-delusory megalomania. In consequence, the Third World has exploded in size and voracity; and stupidity is on the march in the West in the name of transcendent virtue. The Occident has ignored the warnings of its own true prophets, presented in publications such as The Limits to Growth and The Collapse of Complex Societies, among many other means. Mother does not admonish by way of official texts written in American English for barely literate TV-hypnotizees, but through deeds and facts of insuperable power.
She is now presenting us with what may be her final warning: the American proxy war against Russia in Ukraine. The Dr. Strangeloves in the U.S. DeepState meanwhile convince themselves that they are “on the right side of history,” “saving civilization,” “spreading democracy,” “protecting the world,” blah, blah, blah. Meanwhile about a third of the American populace has now told Pew Research that it is willing to risk a third World War (the first two were not enough) to “save” Ukraine. The lemmings were urged to adopt that attitude by the America Ministry of Propaganda which runs the nightly hypnosis programs. Moreover, various and sundry Congresspeople are now joining in the suicidal feeding frenzy. The subconscious fantasy is, “We defeated Mother in the last two big wars, so we can do it again.”
But they do not have the faintest idea of whom they are dealing with.
Biden's hairplug on Sun, 20th Mar 2022 5:17 pm
The media portray Russia as “isolated”, but the country isn’t and lots of other countries see that and love it.
Now is the time for Russia to fully break with the West and team up with China, India, Pakistan, Brazil, Iran, South-Africa, North-Korea, a couple of Stans and set up a parallel economic and financial system that bypasses the dollar.
Germany tried that in the thirties, via barter with South-America (train locomotives against grain and meat from Argentina), but didn’t have enough clout.
Eurasia is totally different. The US is long passed its zenith and in demographic decay and deeply polarized. Here apocalyptic images from the border (not the one with Canada):
https://twitter.com/Lauren_Southern/status/1505619400321208320
Furthermore, Russia, China, North-Korea, Pakistan and perhaps soon Iran, have nukes.
Macron-France already declared NATO “brain-dead” (before the war).
Now the time has arrived to strangulate ZOG to death.
The question is: how to lure the US into war and finish off its navy with hypersonic missiles in East-Asia?
Biden's hairplug on Mon, 21st Mar 2022 8:29 am
“Edward VIII told Nazis to keep bombing England and passed information to Germany during WWII, new documentary claims”
https://www.dailymail.co.uk/news/article-10634351/Edward-VIII-collaborated-Nazis-WWII-documentary-claims.html#reader-comments
The Germans were pro-British Empire, the Americans against. A German-British alliance would have ruled the world. The best brains of Britain, like Chamberlain and Edward VIII understood that, but not the insular commoner, who is plain-anti anything that comes from Europe. And next votes for Churchill as ‘the man of the century’, the worst disaster ever to befell the British Isles, who solely worked for US interests and bringing about the US empire at the cost of the British ones. Britain, shrug.
Biden’s hairplug on Thu, 24th Mar 2022 7:50 am
My biotope, where I am daily present:
https://youtu.be/iSVHp6CAyQ8
CNBC: Why the world relies on ASML
NewAnimalReality on Thu, 24th Mar 2022 5:38 pm
I said that we will install a new reality just to prove to you that you are not controlling earth anymore. I said we will change all animal and install a new wild life animal reality. Welcome to the new Zebra. Welcome to your new animal reality.
https://www.youtube.com/watch?v=_E4U964T7hg
FakeReality on Thu, 24th Mar 2022 5:55 pm
I cleaned the cooling fan of my laptops last night. One battery was dead. I set it up in fire. It was a flat thin lithium battery.
I went outside. Using a knife a cut a X in the battery. I bit of fume went out. I put some snow on the cut battery. I big flame appear, two feet high with a sound similar to a jet engine. The flame look like a 2D holographic projection and the sound seems fake. Like a jet engine. This world is totally bullshit and fake.
https://www.youtube.com/watch?v=j6HDS-qF6Cw
This earth is a fucking torture chamber and deserve to be destroyed. Everything to keep you in state of permanent fear. This is how this earth is designed.
FakeReality on Thu, 24th Mar 2022 6:02 pm
I did something similar to that. A big flame two 2 feet high with a the sound of a small jet engine. Flame and sound seem fake. I cut a X in the battery instead of just a hole.
https://www.youtube.com/watch?v=NQH3mXJ1dmw
Total BS fake world.
FakeReality on Thu, 24th Mar 2022 6:11 pm
I have 3 laptop. According to the web, lithium battery last between 2 to 4 year. I have two laptop that are over 4 year old and both lithium battery that are bulging like this:
https://www.youtube.com/watch?v=NQH3mXJ1dmw
Wait until EV cars start to explode and go up in flame spontaneously. This BS world is managed by psychopaths and stupid people. Destroying it is the only way to go.
FakeBSWorld on Thu, 24th Mar 2022 6:53 pm
I love how this world is BS and fake. The battery has an rated output of 7,7 volt dc. So this most likely means that the laptop is running on 5 volt DC.
The 110 volt power supply is rated at 19,0 volt and 2 amps. Why do you need a 19.0 volt power supply. 10 volt would probably by enough to recharged the battery.
This world is so BS.
Theedrrich is wrong on Fri, 1st Apr 2022 5:46 am
Natural selection doesn’t evolve anything. It’s an error correction mechanism to maintain fitness. If there’s any evolution it is a direct miracle from the Creator. Law of the Creator is error correction to maintain society. It’s was up to man to maintain Devine selection and fitness. But he was too corrupt to manage it. Natural and man-made disasters cannot fix man. Divine intervention and Judgement will.