Saudi Arabia has always planned to use RMB to replace the US dollar as the exchange currency for oil, but it has been staying in the planning stage, and it can only be said that it is still advancing layer by layer, such as a bilateral currency swap agreement of 50 billion yuan between us and Saudi Arabia, which will be extended for three years, for Saudi Arabia, this is also a milestone step in the future RMB settlement of oil!
In the context of the current Sino-US game, as the world's energy giant, his position and trends will be particularly important, there are some things we can only listen to, people may just want to ask the United States for a price!
Of course, this is not to say that Saudi Arabia does not have this motive at all, so let's talk about it below
This is going to start with the Russian-Ukrainian war, as soon as the war broke out, the United States directly kicked Russia out of the dollar settlement system, and then with the other hand on the world's largest industrial manufacturing countries continue to impose sanctions, from daily necessities to chips to new energy, covering more and more categories, but the United States seems to have forgotten a very important causal relationship, the dollar can become the world currency precisely because the dollar has extremely wide circulation, when the United States kicks more and more countries out of this system, Then it is natural that there will be other settlement methods in other corners!
Before the establishment of the dollar settlement system is a huge closed loop formed between countries and countries, we take the dollar to Saudi Arabia, Russia to buy oil, and then go home and work hard to produce, sell to the world to earn dollars, and then the rest of the money continues to buy oil and iron ore, everyone has excess money to buy US bonds, the United States is responsible for finance, we produce, Saudi Arabia and the like are responsible for energy delivery, each performing its own duties, to complete a financial closed loop!
And now with the decline of the United States, the whole situation has begun to become deformed, everyone is afraid to invest in the United States with money, Russia is no longer in the settlement system, and Saudi Arabia has come to invest in our new energy chemical materials! We don't buy U.S. bonds anymore with money, we can settle business with Europe in euros, trade with Russia and Saudi Arabia can be settled in RMB, and trade with ASEAN has begun to be settled point-to-point with digital currency.
The use case of the US dollar is shrinking rapidly, what is the support of the excess US dollar? With democracy and freedom? Currency currency first has goods and then currency, without the energy of Russia in the Middle East and the goods of China, your dollar is nothing more than a pile of waste paper in the international market.
At this time, the problem was given to the Saudi side, which gave me the feeling that Saudi Arabia has always been more active than us, and the reason is very simple, the United States is no longer the largest oil importer, and even the emergence of shale oil in the United States has directly changed the United States from an oil importer to an oil exporter!
In addition, the shadow of the Arab Spring has always been the sword of Damoris hanging over the head of Saudi Arabia, the United States is now in debt of more than 30 trillion, and Saudi Arabia is really afraid that the family's property will be remembered by the Americans! Saudi Arabia at this time will never allow it, its huge oil wealth continues to hang from a tree, and at the same time he needs more military guarantees! Who else in the world but us?
Saudi Arabia has the idea, but the courage is still a little small, we all understand the reason, after all, you say that it is the cornerstone of the petrodollar, or the leader of OPEC, and there are American troops at home, you can first look at the trade between China and other countries has long been in full swing, we signed a 25-year cooperation agreement with Iran, Iranian oil began to use RMB settlement, after the outbreak of the Russian-Ukrainian conflict, Russian oil also began to use RMB settlement, and even Australia's iron ore began to use RMB settlement last year, and even India imported coal worth up to 170 million yuan from Russia, and for the first time, the two sides did not use US dollars, but used RMB for settlement!!
The share of the dollar in international reserves has fallen from 85% in the 70s to 58% of the last century, all of which shows that the prestige of the United States is declining rapidly at a rate that is visible to the naked eye.
The United States is shrinking rapidly, so someone must fill such a complex geopolitical environment in the Middle East, right?
We are well aware of the complexity of the situation in the Middle East, and our current situation does not allow us to quickly station troops in various countries in the Middle East, so we should find out, we have been emphasizing that the problems of the Middle East should be solved by the Middle Easterners themselves!
In short, the internationalization of the RMB is imperative, and it is in the near future!