Saudi Arabia has taken a step against the dominance of the dollar
Saudi Arabia has joined mBridge, an international digital platform led by China to support cross-border payments and currency transactions. On June 8, a 50-year-old agreement between Saudi Arabia and the United States to sell oil and other products only in dollars in exchange for military protection expired. Now Saudi Arabia can sell its oil in other currencies.
Saudi Arabia has joined mBridge, an international digital platform developed by China-led banks to support cross-border payments and foreign exchange transactions. This was reported by Investing.com, citing the information of the Royal Central Bank.
It is noted that the 50-year agreement between Saudi Arabia and the United States expired on June 8, 1974. In the same year, the Saudis promised American leaders to sell oil and other goods to any customer only in US dollars.
According to Bizcommunity, Saudi Arabia's decision not to extend the oil-dollar contract may change the financial situation of the world.
"Now the country can sell its hydrocarbons and other products not only in US dollars, but also in other currencies," the publication writes.
For information, the petro-dollar agreement concluded between Saudi Arabia and the United States is the second achievement of the US policy after the Bretton Woods agreement. After that, the dollar was recognized as a global reserve currency tied to gold.
At that time, the Saudis received US military protection in exchange for selling oil only for dollars.
It should be recalled that in February, the UAE and China made the first cross-border transaction of $14 million using digital dirhams and yuan through this platform.
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