The following report is by Yahoo News:
The three-year deal allows for a maximum of 50 billion yuan or 26 billion riyals.
While relatively small, the deal could loom larger symbolically as Saudi Arabia is the world’s top oil exporter, and most global oil trades are conducted in dollars.
And although Russia is China’s top oil supplier, China imported $65 billion worth of Saudi crude oil in 2022, according to Chinese customs data cited by Reuters. That adds up to roughly 83% of the country’s total exports to China.
More broadly though, China has been on a campaign to boost the internationalization of the yuan in an attempt to dethrone the dollar.
Last month, RBC reported that 25% of Russia’s trade with countries other than China was settled with the renminbi. And a JPMorgan report in September said more and more of the oil trade is taking place with currencies other than the dollar.
Meanwhile, the outstanding balance of China’s foreign-exchange swap lines notched a new high of 117.1 billion yuan in September, according to data analyzed by Bloomberg.
China has signed other currency swap agreements this year with countries like Argentina. In fact, the Chinese central bank currently has 29 active swap agreements, topping 4 trillion yuan, according to a report released last month.
Beijing has also encouraged foreign investors to access Chinese markets through the issuance of panda bonds. At the latest Belt and Road Initiative, the Chinese banks also signed a series of yuan-denominated loans for countries like Peru and Malaysia.
AUTHOR COMMENTARY
It is inevitable that the U.S. dollar will collapse – not saying that will happen tomorrow, it is picking up serious speed, and when it is officially dethroned, the chaos it will cause worldwide and none more so in the U.S. will be epic. The petrodollar is priced in oil and is primarily sourced by Saudi Arabia. The fact they are doing currency swaps with China just goes to prove that the United States’ economic hegemony is at an end.
He that oppresseth the poor to increase his riches, and he that giveth to the rich, shall surely come to want.
Proverbs 22:16
[7] Who goeth a warfare any time at his own charges? who planteth a vineyard, and eateth not of the fruit thereof? or who feedeth a flock, and eateth not of the milk of the flock? [8] Say I these things as a man? or saith not the law the same also? [9] For it is written in the law of Moses, Thou shalt not muzzle the mouth of the ox that treadeth out the corn. Doth God take care for oxen? [10] Or saith he it altogether for our sakes? For our sakes, no doubt, this is written: that he that ploweth should plow in hope; and that he that thresheth in hope should be partaker of his hope. (1 Corinthians 9:7-10).
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Oh me oh my, America’s downfall is going to be epic! The economic fall of Greece won’t even hold a candle to this.