New Delhi, March 15: Saudi Arabia is in active talks with Beijing to price some of its oil sales to China in Yuan, Wall Street Journal reported on Tuesday saying such move would dent the US dollar’s dominance in global market.
A Mumbai-based oil industry expert said that Saudi Arabia’s switch to Yuan would add to the standing of the Chinese currency and may prompt other countries to create its reserve as foreign exchange. “It will, however, depend on the volume of trade in Yuan. The impact of such a currency shift would be seen in the long term. For now, the impact will only be bilateral between the two countries,” he said. Wider acceptability of Yuan would position it as alternative currency to US dollar which China has long been wanting. The world’s second largest economy with sizeable clout in global trade, China has pushed Yuan as viable alternative to US dollar for international payments. In a BRICS meeting earlier, a proposal to trade in yuan among member countries had been discussed though it did not make much headway. As the ongoing Russia-Ukraine crisis escalates and Russia facing a host of sanctions by many West European countries and the US, the idea of alternative to US currency has come under spotlight (UNI).
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