Saudi considering China’s yuan for oil purchases
Saudi Arabia and China have been growing closer for years, and the news comes at a time of frustration among Gulf states with the US.
Saudi Arabia is reportedly considering accepting China’s currency for some oil purchases.
The Wall Street Journal reported today that Saudi Arabia and China are in “active talks” to price some Saudi oil sales to the People’s Republic in yuan instead of the US dollar.
The talks have been happening for six years, but have “accelerated” recently due to Saudi concerns about US security commitments to the kingdom. Saudi leaders are particularly upset about the Biden administration’s position on the Yemeni civil war, the Iran nuclear deal talks, and the chaotic US withdrawal from Afghanistan, according to the outlet.
Saudi Arabia and the United States agreed in the 1970s to price oil sales in US dollars, which helped establish the dollar as the dominant reserve currency around the world.
