Spread falsehood!The Saudi crown prince made a major decision to abandon the use of renminbi to sett

Mondo International Updated on 2024-01-30

Recently, an oil storm involving the Saudi crown prince has quietly arrived, causing widespread attention. There is news that the Saudi crown prince wants to cancel the settlement of oil in yuan**, however, after in-depth investigation, the author found that this statement may be just a rumor. Looking at all the official **, there are no relevant reports, so the authenticity of this rumor is questioned.

However, this rumor has caused an uproar on the Internet. Comments poured in, and most of them believed that Saudi Arabia might abandon the renminbi to settle oil**, the fundamental reason is that they rely on the United States for strategic security, and China cannot provide sufficient strategic guarantees. However, this interpretation is precarious in the face of the facts, because if strategic security cannot be guaranteed alone, Saudi Arabia's case for abandoning the renminbi settlement seems far-fetched. After all, no country would dare to pose a threat to the Saudis, let alone attack.

The article turns to emphasize the centrality of Saudi Arabia in geopolitics, whether in the Gulf, the Arab states, or the Islamic world as a whole, where Saudi Arabia plays a crucial role. No country, not even the United States, poses a substantial threat to Saudi security. This is something to be aware of, as Saudi Arabia's geopolitical position should not be underestimated.

At the same time, the article pointed out that the current Zhongsha oil ** is mainly settled in US dollars, although the RMB settlement has been put on the agenda, but the actual operation has not yet started, and the Saudi crown prince's statement that the RMB settlement is not fully grounded. Internationally, the US dollar is still dominant, while the internationalization of the renminbi is still in its early stages of development.

Emphasizing the international status of the RMB, the article mentions that the RMB is the constituent currency of the International Monetary Organization's Special Drawing Rights and is one of the top five international payment currencies. With the deepening of the bilateral relationship between China and Saudi Arabia, the two countries signed a local currency swap agreement with a scale of 50 billion yuan and 26 billion Saudi riyals, which is valid for three years. Although the scale of the swap is relatively small, this step marks a deeper cooperation between Saudi Arabia and China.

Finally, the article concludes that Saudi Arabia is China's largest oil importer, and the two countries also have extensive and in-depth cooperation in fields other than oil. Due to the growing bilateral relationship between China and Saudi Arabia, Saudi Arabia has become China's largest partner. Looking to the future, the article believes that with the multipolarization trend of the world monetary system, Saudi Arabia's oil sales to China will gradually use the renminbi and become a daily routine operation. This change will bring more opportunities for in-depth cooperation between China and Saudi Arabia.

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