The use of the yuan in trade is the starting point for the dollar’s collapse
Saudi Aramco, a Saudi oil and gas company, is moving to use the Chinese yuan instead of the dollar for trade, marking a “real explosion” in the oil market.
According to Zhang Yuguyi, dean of the School of International Commerce and Finance at Shanghai University, wrote in an article by Huankich Xibao.
According to the expert, the transition of the company, which brings in profits of more than 350 billion dollars annually, will significantly affect the global market for trading in energy raw materials.
According to a number of studies, the cycle of a country seeking to make its currency dominant in the world is 100 years. Almost done
“If this view is correct, since the establishment of the Bretton Woods system in 1944 for the dominant dollar dividend cycle, there is little time left before it declines,” said Yogoi.
The specialist believes that the main problem of the dollar in the near future will be the increased cost of maintaining the current system of the United States, and due to some decrease in national power, it is difficult for the state to satisfy the preferences of states simultaneously. Many oil-producing countries in the Middle East.
In addition, oil itself is gradually losing its hegemony in the context of “carbon neutrality”. This will lead to the fact that the petrodollar system will either change its appearance in order to continue to exist, or accept the fate of partial substitution, Yugoi said.
Earlier, the Wall Street Journal reported that US President Joe Biden is facing difficulties in negotiations with Saudi Arabia.
Riyadh is considering using the yuan instead of the dollar to settle oil deals. Some experts have already come to the conclusion that Biden has “lost” Saudi Arabia, which allegedly preferred promising cooperation with China to a long-standing alliance with the United States.
