Why Saudi Arabia Agreed To Sell Oil In Yuan instead Of Dollars ?

Why Saudi Arabia Agreed To Sell Oil In Yuan instead Of Dollars ?
Saudi Prince and Xi-Jipping

Recently on 15 March 2022 a news came out that China is motivating Saudi Prince Mohammed Bin Salman to accept chinese currency Yuan instead of dollars to sell oil to china.

Not for the first time, China is attempting to buy oil in yuan rather than dollars, and now it may have found a willing seller. Saudi Arabia, which sells a quarter of its exports to China, is considering making these sales in yuan as per the wall street journal.

Why Saudi is Doing That, Why he Didn’t Picked joe Biden’s Call ?

Saudi Crown Prince Mohammed bin Salman and the UAE Sheikh Mohammed bin Zayed al Nahyan are not picking up US president Biden’s call. Here’s why –

Freezing of Weapons Sale To Saudi Arabia

President Joe Biden has been temporarily freezing weapons sales to Saudi Arabia and the United Arab Emirates, pledging to review a set of controversial arms deals former President Donald Trump struck with the two U.S. allies in the waning days of his administration.

The total value of a deal Saudi Arabia inked last month to buy precision-guided bombs from Raytheon, after the Trump administration signed off on the agreement. The deal was expected to send 7,500 smart bombs to Saudi Arabia’s military but when Biden came to power his administration freezed this deal.

One of the possible reason could be that it may prove to be a threat to Israel which is a very significant allie of USA also responsible for the existence of peace in that region and for also safety of Jews.

Yemen War

In 2011, a popular uprising in Yemen forced its long-standing authoritarian president, Ali Abdullah Saleh, to hand over power to his deputy, Abdrabbuh Mansour Hadi. Saudi is still fighting this war against Houthis taking control of Yemen and USA is not doing anything.

Also Biden administration recently cancelled a big deal of weapon sales after comming to power to Saudi Arabia. And recently during Russia-Ukraine war these Houthis also damaged Saudi Arabia’s Oil Depots impacting Saudi’s Economy and ultimately targeting oil prices in international market. And Of course Iran a rival of USA is also supporting Yemen Houthis and Iran is supported by Russia who has started Ukraine war from February 20.

Now a days war is turning out to be more violent and It seems like USA is not helping Saudi Arabia in this matter.

Accused of Killing Jamal Khashoggi

USA has said in it’s reports that it was Saudi Prince Mohammad Bin Salman who was responsible for journalist Jamal Khashoggi murder in 2018. But Crown Prince Mohammed, who is effectively the kingdom’s ruler, has denied any role in the murder.

According to Saudi prosecutors, Khashoggi was forcibly restrained after a struggle and injected with a large amount of a drug, resulting in an overdose that led to his death. His body was then dismembered and handed over to a local “collaborator” outside the consulate, prosecutors said. The remains were never found.

So it seems that Saudi Prince is not happy with USA accusing him of murdering Jamal and that may be the reason that during this Russia-Ukraine war he is not picking up Biden’s call and the US-Saudi relations are disturbed by this.

Removal Of Troops and Weapons From Middle-East

The Biden administration is consistently withdrawing Patriot antimissile batteries from four Middle East countries as the US reduces its military footprint in the region amid a reduction in tensions with Iran, a US news outlet reported on Friday.

The withdrawal of anti-missile batteries marks a return to a more normal level of defence in the region where the US continues to maintain tens of thousands of troops even as it has reduced forces deployed to Afghanistan and Iraq, the Journal reported.

Russia Ukraine War

As whole world has witnessed that US did not send its army to Ukraine instead they are profited by selling weapons to Ukraine. Other countries are like Japan and Taiwan have fear that seeing the invasion of Russia, China can also attack Taiwan and in that situation what will America do ?

Taiwan and Japan now want clearification from America of it would send its army to them in case of Chinese invasion. Many experts are saying that USA has just used Ukraine as a toy to crush Russia and called Putin a “War Killer” but what about USA’s mass killings in Iraq in the name of terrorism in which 100 thousands of innocent people got killed.

Also they sanctioned whole Russian advising Europe not buy oil and send American oil to gain more profits but USA itself is buying oil and fertilizers from Russia and giving warning to other small and developing nations of imposing sanctions if they buy anything from Russia.

So USA has shown its hypocrisy and it need only its profit and in future many countries has realized that USA will loose its power and its no benefit of being an allie of US.

UAE in FATF Grey List

Recently USA has put United Arab Emirates in grey list of FATF and experts say that it did so because UAE had abstained in UN voting against Russia. So USA has UN and FATF control and it has a major benefit and usually controls all institutions around the world.

Loosing Super Power

Many nations had predicted that USA and its currency’s power has been continuously declining and many new developing nations can take its place in future. We can see this during Russia-Ukraine war when US sanctions can’t stop Russian invasion in Ukraine. Now Russian currency had also bounced back and became the best performing currency as Russia now demands Rubbles in purchase of oil and gas.

Also there are many European nations like Germany, Hungary etc. which are not accepting US sanctions and are continuing to purchase oil and gas from Russia due to possibility of rising inflation as they are very much dependent on Russia for cheap oil and gas.