If Saudi Arabia agrees to accept yuan payments for its crude exports, that could eat away at the dollar’s dominance, a think tank strategist said.
China wants to buy more oil from Saudi Arabia, its President Xi Jinping has said — a move that some economists have warned could chip away at the US dollar’s global dominance.
Xi said China will „expand the scale of crude oil trade“ with the Middle Eastern country on a state visit Thursday, according to a foreign ministry statement. He also agreed to step up coordination with Saudi Arabia on energy policy in his meeting with Crown Prince Mohammed bin Salman.
The meeting, which signaled a warmer relationship between Beijing and Riyadh, comes after the US and its allies brought in a ban and price cap on Russian oil exports. Those are just the lastest in a string of Ukraine war sanctions that have spooked the Chinese and Saudi authorities, according to experts.
The meeting wrap-up made no mention of the idea that Saudi Arabia may start accepting payments in China’s yuan payments for its crude exports — something the two countries were reported to have under active discussion earlier this year, in a possible pivot away from the dollar.
