Bandar Alkhorayef, Saudi Minister of Industry and Mineral Resources, stated that while the petroyuan – the use of the Chinese currency to settle oil shipments – was not “substantial to the ministry,” the country was open to new ideas, trying not to mix politics and commerce. This hints at the yuan’s adoption for this purpose.
Saudi Minister Hints at 86 Million Tonnes of Petroyuan Adoption, States Country Is 'Open to New Ideas'
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Saudi Arabia Open to Petroyuan Usage, Minister States It Can Happen ‘With Freedom’
More countries are looking to find alternatives to the U.S. dollar. Saudi Arabia, one of the key partners of the U.S. would be open to adopting the petroyuan – implementing the Chinese yuan to pay for oil imports – as it seeks to get a closer bilateral investment relationship with China.
In a recent interview in Hong Kong, Saudi Minister of Industry and Mineral Resources Bandar Alkhorayef gave his take on the petroyuan subject, showing openness to the idea. Alkhorayef stated that while the petroyuan was not “substantial to the ministry,” he believed that Saudi Arabia would do “what’s in its best interest. “I think Saudi Arabia will always try new things and is open to new ideas, and we try not to mix politics with commerce,” he stressed.
In 2023, China imported 86 million tonnes of crude from Saudi Arabia. This is why the petroyuan’s implementation with Saudi Arabia would constitute a large step for the constitution of the Chinese yuan as a more international coin, leveraged for commodities exchanges. This proposal comes as Saudi Arabia wants to establish deeper links and cooperation with Chinese companies producing EVs and passenger planes.
As for the timeline for this implementation, Alkhorayef explained that it depended exclusively on the parts’ will to arrange this and would not be assessed from a policy point of view. He declared:
From a commercial point of view, between a supplier and a customer, I think such an arrangement can happen with the freedom they have.
Former President Trump is conscious of these de-dollarization efforts and proposed a plan to harm countries leaving the U.S. dollar. “You leave the dollar, and you’re not doing business with the United States because we are going to impose a 100% tariff on your goods,” he recently warned.
What do you think about China and Saudi Arabia adopting the petroyuan? Tell us in the comments section below.
