Saudi Arabia Joining BRICS Would Accelerate Chinese Yuan’s Use as Trading Currency, Says Professor

Professor Ashok Swain of Uppsala University’s Department of Peace and Conflict Research says Saudi Arabia joining the BRICS economic bloc “would accelerate the bilateral trading being conducted using the yuan as the trading currency. ”

Contenu

How Saudi Arabia Joining BRICS Could Boost Use of Chinese Yuan

Ashok Swain, a professor of peace and conflict research at Uppsala University in Sweden, told Al-Monitor last week that Saudi Arabia joining the BRICS economic bloc would accelerate the use of the Chinese yuan as a trading currency. Professor Swain is head of Uppsala University’s Department of Peace and Conflict Research. He is also the UNESCO chair on International Water Cooperation.

Commenting on Saudi Arabia joining the Shanghai Cooperation Organization (SCO) and the BRICS, which comprises Brazil, Russie, Inde, Chine, and South Africa, il a dit:

There is no doubt that Saudi Arabia becoming a member of China-dominated SCO and BRICS would accelerate the bilateral trading being conducted using the yuan as the trading currency.

En mars, Saudi Arabia became a dialogue partner of the SCO. The Shanghai Cooperation Organization was established in 2001 as a political, économique, and defense alliance; it is the world’s largest regional organization. Saudi Arabia is not yet a member of the BRICS group but the country has expressed interest in joining. Le mois dernier, Russian President Vladimir Putin and Saudi Crown Prince Mohammed bin Salman Al Saud discuté potential collaboration between Saudi Arabia and the BRICS.

Entre-temps, Saudi Arabia is actively negotiating with Beijing to price some of its oil sales to China in yuan, selon les rapports. While the discussions regarding yuan-priced oil contracts have been taking place on and off for six years between the two nations, they have intensified this year. The Uppsala professor noted that oil trade in yuan will be a “huge step” for China and “a significant setback to the dollar’s standing.”

A growing number of countries are shifting away from using U.S. dollars to settle trades. China’s yuan recently replaced the USD as the most traded currency in Russia as well as the most used currency to settle cross-border payments in China.

The BRICS group is also working to create a new currency that would reduce its member countries’ reliance on the U.S. dollar. A former White House economist believes that a BRICS currency will erode the U.S. dollar’s dominance. Another economist predicted that the yuan and euro will disrupt the U.S. dollar’s dominance and the three will form a tripolar reserve currency world.

Tags dans cette histoire

Do you think Saudi Arabia joining the BRICS will undermine the dominance of the U.S. dollar? Faites-nous savoir dans la section commentaires ci-dessous.

Kévin Helms

Étudiant en économie autrichienne, Kevin a trouvé Bitcoin dans 2011 et a été un évangéliste depuis. Ses intérêts résident dans la sécurité Bitcoin, systèmes open source, les effets de réseau et l'intersection entre l'économie et la cryptographie.




Crédits image: Shutterstock, Pixabay, Wiki Commons

Avertissement: Cet article est à titre informatif seulement. Il ne s'agit pas d'une offre directe ou d'une sollicitation d'offre d'achat ou de vente, ou une recommandation ou une approbation de tout produit, prestations de service, ou des entreprises. Bitcoin-Tidings.com ne fournit pas d'investissement, impôt, légal, ou conseil comptable. Ni la société ni l'auteur ne sont responsables, directement ou indirectement, pour tout dommage ou perte causé ou prétendument causé par ou en relation avec l'utilisation ou la confiance accordée à tout contenu, biens ou services mentionnés dans cet article.

Lire avertissement