The good news is coming, Saudi Arabia took the initiative to say that it can petroyuan in the future, what does it mean? That is to say, Saudi oil transactions are mainly settled in RMB, which can be said to make the dollar quite embarrassing, more and more unpopular, and no one wants it. The 35 trillion U.S. bonds owed by United States will be wiped out if they collapse once they collapse.
On the 9th, Hong Kong media "South China Morning Post" reported that Saudi Minister of Industry and Mineral Resources Bandar · Hulayev said in Hong Kong on the 7th that Saudi Arabia is willing to "try new things" and is "open" to new ideas including the use of RMB in cross-border crude oil transaction settlement.
This is definitely great news for the Chinese side, and it is the next major focus of the internationalization of the renminbi, which can expand the influence of the renminbi in international trade. What are the benefits of petroyuan? The oil transaction between China and Saudi Arabia is more straightforward, getting rid of indirect settlement in US dollars, saving a large amount of seigniorage collected by the United States; If it can be extended to other countries, it can also receive some seigniorage like the United States; Middle Eastern countries have a large amount of renminbi in their hands, which will naturally promote trade and investment in China.
Why does Saudi Arabia want to use RMB for settlement? Because United States is now itself an oil exporter, no longer buys oil from Saudi Arabia, and Saudi Arabia has become a competitive relationship, and China is now the largest buyer of Saudi oil, since you are not my customer anymore, why should I use your dollar settlement? Do you still have to collect an intermediate tax? From a business point of view, using the renminbi is the best option for Saudi Arabia right now.
The second is that the United States industry is now hollowed out, the money saved by selling oil in Saudi Arabia in the past was invested in buying US bonds and deposited in United States banks, and there was no way to buy anything, and a large number of United States banks have gone bankrupt in the past two years, and 35 trillion US bonds will collapse at any time. Next, the United States opened the channel of interest rate cuts, and the dollar in the hands of Saudi Arabia began to depreciate.
Finally, what is more serious is that there is a big war going on in the Middle East, and the Arab countries led by Saudi Arabia are carrying out a campaign to drive the United States and Israel, and once the United States change their faces, they will swallow all of Saudi Arabia's wealth alive like confiscating Russia assets, and Saudi Arabia will be beaten up like a chicken and an egg. Therefore, not only Saudi Arabia, but all countries in the Middle East have a strong sense of crisis.
So what does the Saudis want in return? The first is the safety of your own funds; Secondly, you can buy a lot of things in China; There is also the large-scale Sino-Saudi cooperation that Saudi Arabia wants, and Hurayev said that Chinese companies related to the fields of metals, pharmaceuticals, smart cities, robotics and renewable energy are welcome to invest in Saudi Arabia. This is to replicate China's modern technology industry.
Then surely someone said that they are not afraid of United States? If it is other countries, it may be really afraid, but if China dares to intervene by force United States purely commercial behavior, it will move China's core interests and hinder China's development, and China will definitely fight it to the end with all its strength, and it is already mired in the United States of the Middle East and the Russia-Ukraine war, how much strength can fight with China? Saudi Arabia has spent a lot of money to tie up China and itself, which has not only brought security for Saudi Arabia, but also a better future for Saudi Arabia#爆料#