Breaking: Petrodollar Cracks: Saudi Arabia Considers Accepting Yuan For Chinese Oil Sales

[Qutb-ud-din-Aibak]

Muhammad Bin Salman at the great wall of China (Pictures from last year)

 

[LeGenD]

Of course that statement is wrong. Bro you were talking about manufacturing, wasn't it? There is absolutely no possible link between Xi Jinping (who started restructuring the manufacturing sector since 2015) and Trump (who came into office in 2016) in this field.

Not sure why you quote that SCMP link as support, cos it reads commodities, NOT manufacturing.

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Xi Jinping's answer to commodities is not some complicated reform or restructuring, but hoarding. Very simple, just load up strategic reserves (onshore and offshore) for oil, gas, grains, iron ore, minerals or whatever necessary. Like this:

​

China hoards over half the world's grain, pushing up global prices

Testy ties with U.S. and Australia could be prodding China to boost food reserves

asia.nikkei.com

My friend,

By restructing Chinese economy, I implied a shift from Manufacturing-driven to Consumer-driven economic outlook in the future. My assertion is reflected in following article:

Why is domestic consumption more important than ever?​

Amid deteriorating relations with some of its trade partners, reliance on an export-oriented development strategy, or “external circulation”, is seen as unsustainable by China’s leaders.

China’s foreign relations have deteriorated with a number of nations since the start of the Covid-19 pandemic. US President Joe Biden has largely continued the Trump administration‘s hardline China policy, relations with Australia have dived, and Beijing has faced sanctions and criticism from Western nations over suspected human rights abuses in Xinjiang.

As a result, China’s leaders have outlined a more inward-looking economic strategy to drive growth amid an increasingly unreliable external environment.

Explainer | How important is consumption to China’s economy?

As China’s middle class has swollen over the past two decades, consumption has become a key driver of growth and one that Beijing wants to tap further in the years ahead.

amp.scmp.com

The US - China Trade War episode under Trump's Presidency has created an environment of policy uncertainty for the Chinese as per the Chinese Economist Dr. Huang Yiping (Peking University). I agree on this part.

For perspective, China has followed some of the recommendations in line with the Phase One Trade Deal with USA but not the entirety of it because of the American sanctions and efforts to block Chinese formal attempts to purchase certain American technologies.

What has the U.S.-China trade war achieved? - Marketplace

The U.S. and China have been engaged in a trade war for nearly four years. What's the scorecard?

www.marketplace.org

Was the US-China phase-one trade deal a ‘historic failure’, and what’s next?

China reportedly bought only 57 per cent of the US exports it had committed to purchase under the phase-one trade deal, so what is the next step for the world’s two largest economies?

amp.scmp.com

China - Russia economic dealings in view of a new set-of-sanctions imposed on Russia by multiple countries for invading Ukraine will worsen the afore-stated policy uncertainty:

Rollback of Xi Jinping’s Economic Campaign Exposes Cracks in His Power

In addition to pressure from the West on Beijing over Xi’s Russian entente, he is struggling with a severe slowdown in the economy. The new disquiet raises questions about his unassailed dominance.

www.wsj.com

Therefore.

 

[Foinikas]

Suddenly the Americans will remember that Saudi Arabia is a brutal dictatorship and needs to become a democracy.

 

[Aneeq Rashid]

Is it time for democracy?

 

[Song Hong]

Saudi has no choice either. China can get her oil from Iran which is accepting either Yuan or Euro due to US sanction.

China: accept Yuan or I get Iran oil

Saudi: ok I will take Yuan

 

[Qutb-ud-din-Aibak]

Suddenly the Americans will remember that Saudi Arabia is a brutal dictatorship and needs to become a democracy.

Yeah sure that is if they are willing to eat couple of nukes for that.. I don't think so big fella. We have a base in Tabuk, KSA and defense treaties. If they ain't willing to take that for Ukraine sure as hell won't do it for less

 

[mmr]

Is it time for democracy?

Its coming lol

Wait for it.

 

[Song Hong]

Getting rid of house of Saud is not a good option for West. The house of saud existence is entirely depend on west.

The other alternative such as house of hashimite will usher modernisation and anti zionist agenda if they are allowed to emerge.

 

[Khanate]

Shortsighted.

Post in thread 'Russia-Ukraine War - News and Developments' https://defence.pk/pdf/threads/russia-ukraine-war-news-and-developments.706984/post-13629628

You are reading this wrong.

The Gulf Sheikhdoms don't want to lose market share to Russia. At the same time, they don't want to offer the steep discounts Russia is giving to China, India and Pakistan, and so this is the next best offer to retain the market share.

This move will also increase speculation in the market and will hurt countermoves aiming to temper high oil prices up.

 

[Titanium100]

Could have grave consequences far beyond for every single corner in the world and this is no exaggeration but an understatement

This..

It will mean like giving a whole civilization two options either de-exist or exist.. Definitely a judgement before judgement.. We will defend if necessary until the last muslim on earth and it will be non-negotiable terms on our side.. That is like going thru 1.5billion

 

[beijingwalker]

The Chinese Yuan makes up only 1.2% of reserve currency use. It will take a long time to replace the US dollar with anything else.

This is changing fast in Yuan's favor

Yuan overtakes yen in global transaction volume​

JANUARY 25, 2022
TOKYO – It turns out growing 8.1% wasn’t the most important 2021 milestone for China’s economy. That honor goes to Beijing’s currency topping the yen to become the fourth-most used for cross-border payments.

Yuan overtakes yen in global transaction volume - Asia Times

TOKYO – It turns out growing 8.1% wasn’t the most important 2021 milestone for China’s economy. That honor goes to Beijing’s currency topping the yen to become the fourth-most used for cross-border payments. In a year in which Covid-19 disruptions savaged gross domestic product (GDP) around the...

asiatimes.com

 

[OIO]

Petrodollar Cracks: Saudi Arabia Considers Accepting Yuan For Chinese Oil Sales​

Petrodollar Cracks: Saudi Arabia Considers Accepting Yuan For Chinese Oil Sales
One of the core staples of the past 40 years, and an anchor…

Published March 15, 2022

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Petrodollar Cracks: Saudi Arabia Considers Accepting Yuan For Chinese Oil Sales

One of the core staples of the past 40 years, and an anchor propping up the dollar’s reserve status, was a global financial system based on the petrodollar – this was a world in which oil producers would sell their product to the US (and the rest of the world) for dollars, which they would then recycle the proceeds in dollar-denominated assets and while investing in dollar-denominated markets, explicitly prop up the USD as the world reserve currency, and in the process backstop the standing of the US as the world’s undisputed financial superpower.

Those days are coming to an end.

One day after we reported that the “UK is asking Saudis for more oil even as MBS invites Xi Jinping to Riyadh to strengthen ties“, the WSJ is out with a blockbuster report, noting that “Saudi Arabia is in active talks with Beijing to price its some of its oil sales to China in yuan,” a move that could cripple not only the petrodollar’s dominance of the global petroleum market – something which Zoltan Pozsar predicted in his last note – and mark another shift by the world’s top crude exporter toward Asia, but also a move aimed squarely at the heart of the US financial system which has taken advantage of the dollar’s reserve status by printing as much dollars as needed to fund government spending for the past decade.

According to the report, the talks with China over yuan-priced oil contracts have been off and on for six years but have accelerated this year as the Saudis have grown increasingly unhappy with decades-old U.S. security commitments to defend the kingdom.


China buys more than 25% of the oil that Saudi Arabia exports, and if priced in yuan, those sales would boost the standing of China’s currency, and set the Chinese currency on a path to becoming a global petroyuan reserve currency.

While nothing new to regular ZH readers (see this from 2017, “The World’s New Reserve Currency? Everything You Need To Know About PetroYuan“), the idea of a new global reserve currency was reintroduced last week by none other than former NY Fed staffed Zoltan Pozsar who wrote in his latest note that “when this crisis (and war) is over, the U.S. dollar should be much weaker and, on the flipside, the renminbi much stronger, backed by a basket of commodities. From the Bretton Woods era backed by gold bullion, to Bretton Woods II backed by inside money (Treasuries with un-hedgeable confiscation risks), to Bretton Woods III backed by outside money (gold bullion and other commodities).”

And so the pieces of the endgame are falling into place: Russia starving the western world of much needed resources, sending commodity prices ever higher, while it’s silent partner China quietly picks up the pieces and takes advantage of Russia’s isolation to approach all those other “non-western” former petrodollar clients to offer them a new product, the yuan, which Beijing is now actively and aggressively pushing to dethrone the dollar as a global reserve currency.

Petrodollar Cracks: Saudi Arabia Considers Accepting Yuan For Chinese Oil Sales

Petrodollar Cracks: Saudi Arabia Considers Accepting Yuan For Chinese Oil Sales One of the core staples of the past 40 years, and an anchor...

www.nxtmine.com

Big news!

 

[casual]

Right now countries have to convert to dollar in order to buy energy. Petro dollar is the last thing keeping the dollar from being monolopy money. With the amount of dollars printed and the 80% of all dollars being overseas, the dollar would reach hyperinflation status very fast. US have fought wars for a lot less.

 

[Song Hong]

Saud, Russia support Yuan. Now what i dollar fungible for?

If dollar Tsunami flood US, it will be hyperinflation.

 

[mmr]

The Chinese Yuan makes up only 1.2% of reserve currency use. It will take a long time to replace the US dollar with anything else.

Does it mean we will have another 10000 threads of us dollar collapsing on pdf?