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First and foremost, the weakening of the U.S. dollar would begin if Saudi Arabia accepted local currencies for oil trade. If Saudi Arabia demands that other countries pay in local currencies This created synthetic demand – countries buying oil would need US dollars – which in turn enabled US dollar primacy. However, the dollar dominance may be coming to an First and foremost, the weakening of the U.S. dollar would begin if Saudi Arabia accepted local currencies for oil trade. If Saudi Arabia demands that other countries Al-Jadaan’s comments indicate that Saudi Arabia might someday accept all local currencies for oil payments and not the US dollar. The move comes straight from the Saudi Arabia has held off formally joining the BRICS bloc of Saudis balancing China trade relations with long-standing US alliance; Attending BRICS meeting but

The potential shift away from the US dollar in oil trade is a hot topic, especially concerning BRICS nations and Saudi Arabia. What happens if Saudi Arabia ditches the US dollar for oil payments? The implications are far-reaching, impacting global finance and potentially reshaping the geopolitical landscape.

First and foremost, the weakening of the U.S. dollar would begin if Saudi Arabia accepted local currencies for oil trade. This is a pivotal point. For decades, the petrodollar system has been a cornerstone of US dollar dominance. This dominance arose because if Saudi Arabia demands that other countries pay in local currencies, the existing system is challenged.

Historically, the demand for US dollars was artificially inflated through oil trade. This created synthetic demand – countries buying oil would need US dollars – which in turn enabled US dollar primacy. However, the dollar dominance may be coming to an end. First and foremost, the weakening of the U.S. dollar would begin if Saudi Arabia accepted local currencies for oil trade. If Saudi Arabia demands that other countries use, for example, the Chinese Yuan or Indian Rupee to purchase oil, the demand for US dollars would decrease, potentially impacting its value on the global market.

Al-Jadaan’s comments indicate that Saudi Arabia might someday accept all local currencies for oil payments and not the US dollar. This signals a significant shift in Saudi Arabia's economic strategy, driven by a desire for greater flexibility and reduced reliance on the US dollar.

The changing dynamics are further complicated by Saudi Arabia's relationship with the BRICS economic alliance. While Saudi Arabia has held off formally joining the BRICS bloc of nations (Brazil, Russia, India, China, and South Africa), the kingdom is actively engaging with them. This is a strategic move, reflecting Saudis balancing China trade relations with long-standing US alliance; Attending BRICS meeting but not yet fully committing. This balancing act illustrates Saudi Arabia's attempts to navigate a complex global environment.

The consequences of Saudi Arabia moving away from the US dollar for oil trade are multifaceted. It could accelerate the rise of alternative reserve currencies, empower BRICS nations, and force the US to re-evaluate its economic policies. The future of global finance hinges, in part, on the decisions made by Saudi Arabia regarding its oil trade and its relationships with both the US and emerging economic powers like those within the BRICS alliance.

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