China and Saudi Arabia intends to make oil deals in yuan, writes The Wall Street Journal.
Saudi Arabia is considering selling oil to China in yuan instead of the dollar.
Shipments from the Kingdom to China account for a quarter of the country's total oil exports, and a shift in payments to the Chinese national currency will allow China to increase its share of the yuan in international settlements. It threatens the position of the US dollar, emphasizes the rapprochement of Saudi Arabia with its Asian partners.
"The dynamics has changed dramatically. US relations with Saudi Arabia have changed, while China is the world's largest importer of oil and is making very lucrative offers to the Kingdom,” said a source in the publication.
“Relations between the United States and Saudi Arabia are currently deteriorating. The United Arab Emirates is dissatisfied with US President Joe Biden's policy,” he said, adding that refusing to trade in dollars with China could also threaten Saudi Arabia's economy. The currency, the riyal, is connected to the dollar.
Earlier it was reported that India and Russia could switch to the yuan as the main currency to create a mechanism for trading in national currencies on a rupee-ruble basis.
