Saudi Arabia May Accept Yuan for Oil to Strengthen Ties with China

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Saudi Arabia May Accept Yuan for Oil to Strengthen Ties with China

Loveworld / 1 hour

September 10, 2024

1 min read

Saudi Arabia is considering accepting Chinese yuan for oil payments as part of its strategy to strengthen economic ties with China, ahead of Premier Li Qiang’s visit to the kingdom on September 9. This move comes as Saudi Arabia seeks to diversify its economy beyond oil dependence.
In an interview in Hong Kong, Bandar Alkhorayef, Saudi Arabia’s minister of industry and mineral resources, indicated that the kingdom is “open to new ideas” and aims to “not mix politics with commerce,” subtly referencing the tensions between China and the US, Saudi Arabia’s traditional ally.
China is eager to boost the global use of the yuan, which has been gradually challenging the dominance of the US dollar in international trade. This shift gained momentum following Russia’s exclusion from the dollar system after its 2022 invasion of Ukraine.
Analysts point out that China’s significant investments in Saudi Arabia, particularly in renewable energy and green infrastructure, could further assist in the kingdom’s efforts to reduce its reliance on