Saudi minister hints at 86 million tonnes of Petroyuan, says country is 'open to new ideas'

Bandar Alkhorayef, Saudi Minister of Industry and Mineral Resources, stated that although the yuan – the use of the Chinese currency to pay for oil shipments – is not “critical to the ministry,” the country is open to new ideas and tries not to mix politics and commerce. This is a reference to the use of the yuan for this purpose.

Saudi Arabia Open to Petroyuan Use, Minister Says It Can Happen 'With Freedom'

Many countries are looking for alternatives to the US dollar. Saudi Arabia, a major US partner, is open to adopting the petroyuan – using the Chinese yuan to pay for oil imports – as it seeks closer bilateral investment ties with China.

In a recent interview in Hong Kong, Saudi Minister of Industry and Mineral Resources Bandar Alkhorayef gave his views on the petroyuan, indicating openness to the idea. Alkhorayef stated that while the petroyuan is not “important to the ministry,” he believes Saudi Arabia will do “what is in its best interest.” He stressed, “I think Saudi Arabia will always try new things and be open to new ideas, and we try not to mix politics with commerce.”

In 2023, China imported 86 million tons of crude oil from Saudi Arabia. This is why the implementation of the petroyuan with Saudi Arabia would be a big step towards establishing the Chinese yuan as a more international currency, used as a leverage for commodity exchanges. The proposal comes as Saudi Arabia looks to establish deeper links and cooperation with Chinese companies that manufacture electric vehicles and passenger aircraft.

Regarding the implementation timeline, Alkhorayef explained that this depends entirely on the will of the parties in the arrangement and will not be assessed from a policy perspective. He stated:

From a commercial point of view, between supplier and customer, I think such an arrangement is possible because of the freedom they have.

Former President Trump was aware of these de-dollarization efforts and proposed a plan to hurt countries that leave the US dollar. “You leave the dollar, and you will not do business with the United States because we will put a 100% tariff on your goods,” he recently warned.

What do you think about China and Saudi Arabia adopting the petroyuan? Let us know in the comments below.
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