Professor Ashok Swain of Uppsala University’s Department of Peace and Conflict Research says Saudi Arabia joining the BRICS economic bloc “ would fast-track the bilateral trading being conducted utilizing the yuan as the trading currency. ”
How Saudi Arabia Joining BRICS Could Boost Use of Chinese Yuan
Ashok Swain, a professor of peacefulness and conflict exploration at Uppsala University in Sweden, reported Al-Monitor last week that Saudi Arabia joining the BRICS economic bloc would accelerate the usage of the Chinese yuan as a trading currency. Professor Swain is head of Uppsala University’s Department of Peace and Conflict Research. He's similarly the UNESCO chair of International Water Cooperation.
Remarking on Saudi Arabia joining the Shanghai Cooperation Organization (SCO) and the BRICS, which comprises Brazil, Russia, India, China, and South Africa, he spoke:
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.
In March, Saudi Arabia came a dialogue partner of the SCO. The Shanghai Cooperation Organization was established in 2001 as a political, economic, and guard alliance it's the world’s largest regional association. Saudi Arabia isn't ultimately a member of the BRICS group but the country has expressed interest in joining. Last month, Russian President Vladimir Putin and Saudi Crown Prince Mohammed bin Salman Al Saud discussed potential cooperation between Saudi Arabia and the BRICS.
Meanwhile, Saudi Arabia is actively bargaining with Beijing to price some of its oil trades to China in yuan, according to reports. While the conversations regarding yuan-priced oil contracts have been taking a position on and off for six years between the two countries, they've intensified this year. The Uppsala professor remarked 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 nations are moving away from utilizing U.S. dollars to settle trade. China’s yuan newly 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 similarly working to produce a new currency that would demote its member nations ’ dependence 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 that the three will form a tripolar reserve currency world.
(Kevin Helms, Bitcoin.com, 2023)