For more than half a century, due to the special commodity currency form of "petroleum dollar", the world's oil and energy economy has always been controlled by the US economy. USD controls a series of pricing, transactions, and settlements of commodities such as oil, and also shackles the economies of multiple oil countries.
However, in the process of Feder continuously harvesting currency and wealth spreads across the globe through different cycles of monetary strategies, oil-producing countries can also avoid being affected. At the same time, the various oil settlement and transaction restrictions initiated by the US dollar have made the finance and trade of many oil-producing countries miserable. It is also based on this that more than oil countries are fighting back against the US dollar.
As of now, the eight major oil countries including Russia, Iran , Venezuela , Qatar , UAE, Iraq , Nigeria , Angola , these eight major oil countries have started the process of de-dollarization in their own ways. For example, Russia has opened up a comprehensive reduction in dependence on the US dollar in many aspects of foreign exchange reserves and energy settlement. Iran has officially announced several months ago that it would list the RMB and the euro as foreign exchange currencies to replace the foreign exchange status of the US dollar. In addition, Iran and Iraq's bilateral economic and trade have also begun to use some non-dollar currencies.
At the same time, Venezuela suggested that multiple oil countries give up the US dollar and trade oil in RMB five years ago. As of the time being, Venezuelan oil currency has made breakthroughs in commodity settlement. In Nigeria, Qatar's central bank also signed a local currency swap agreement with China's central bank , and Angola also gave up its years of anchoring the US dollar. UAE's Dirhams are also used in energy trading in some markets.
Some Japanese analysts suggested that Asia should transition a large amount of oil and other energy trade to the RMB and the Japanese yen. In fact, as the world's major energy importer, India has used non-US dollar currencies including Hungry RMB, ruble , and Dirham of the UAE in the process of purchasing Russian energy commodities since this year. And before that, a Chinese oil giant had signed the first Middle East oil import agreement denominated in crude oil RMB futures, and plans to sign more such agreements, which means that China plans to use RMB to purchase large quantities of oil.
In fact, signs indicate that many oil-producing countries around the world have achieved their natural progress in using RMB to settle oil. At present, RMB crude oil futures have developed into the world's third largest crude oil futures, and the pricing power function has gradually emerged. Data shows that as of now, at least 70 international brokerage companies have launched RMB crude oil trading services. Some analysts on Wall Street believe that the RMB's achievements in the settlement of commodities such as oil have achieved things that have not been done in various non-US dollar currencies, including rubles, yen, rupee, dirhams, etc.
This also shows that the era when the US dollar dominates energy commodities such as oil is changing, and the post-petro-dollar era may be coming. In this process, after the above eight oil countries showed their swords towards the US dollar, the world's largest oil-producing country, , Saudi Arabia , is also directly challenging the US dollar, becoming the ninth de-dollarized oil country.
data shows that since 2020, Saudi Arabia has generally sold US bonds , and has sold at least US$62.8 billion in US bonds, with the cumulative proportion of US bonds selling as high as nearly 35%. This is equivalent to Saudi Arabia selling about 14% of its US dollar reserves compared to Saudi Arabia's approximately US$450 billion in foreign exchange reserves. Digitally speaking, the Saudi central bank is directly fighting back against the dollar dominance of the Federal Reserve and the U.S. economy. This phenomenon has far-reaching significance in the global currency field.
You should know that the birth of the petrodollar was based on the US dollar settlement oil signed by Saudi Arabia and the United States in the 1970s. In addition, the strange phenomenon of no oil without US dollars is formed.Therefore, when Saudi Arabia began to publicly stay away from dollar assets, it seemed to herald a brand new era of commodity currencies, that is, the post-petroleum dollar era may be coming.
. Regarding the "NOPEC" (Anti-OPEC Act) plan proposed by the United States earlier, Saudi Arabia directly hit back, claiming that if this bill is passed, it will terminate the petrodollar agreement. At that time, Saudi Arabia will sell oil in non-US dollar currencies, and the US dollar is the ultimate option.
Not only that, the Saudi economy's counterattack against the US dollar is also reflected in its investment and economic and trade processes. Saudi Kingdom Holding invested in three major Russian energy companies during the special period from February 22 to March 22. Immediately afterwards, Saudi Arabia imported 647,000 tons of fuel from Russia through the ports of Russia and Estonia , compared with 320,000 tons of fuel in the same period last year. In other words, Saudi Arabia doubled its imports of Russian crude oil in the second quarter.
The world's largest oil-producing country doubled its purchase of crude oil from another oil-producing country, a phenomenon that attracted the attention of analysts. There are signs that Saudi Arabia may purchase Russian crude oil at a low price and resell it in Western markets such as the United States. And things didn't end there. Although the United States has repeatedly asked Saudi-led OPEC+ (Organization of Petroleum Exporting Countries+) to increase crude oil production, trying to reduce inflation pressure in the United States by lowering oil prices. However, the OPEC+ meeting, which just ended last week, decided to reduce its daily output target by 2 million barrels starting next month.
In other words, the Saudi economy seems to be deviating from the crude oil demands of the US economy, and instead further tightens the crude oil market, which is also a potential signal for the Federal Reserve and the US dollar to show its sword. Immediately afterwards, htmlOn October 8, it was reported that Saudi Aramco, the world's largest oil company, will raise the official price of crude oil shipped to the United States in November by 20 cents, while keeping the prices in its main market, Asia, basically the same as in October. In other words, Saudi Arabia has officially announced that oil exports have increased prices to the United States, but prices to the Asian market remain unchanged.
This further shows that while the Saudi economy is showing its sword to the US dollar, it is also heading eastward, focusing its attention on the Asian market and currencies. It is worth mentioning that according to the Saudi Arabian newspaper, China's huge population, long historical traditions, rich cultural connotations and strong economic capabilities, has attracted the attention of other countries.
The newspaper further stated that China's industry has become the main production line of the whole world. Foreign countries all hope to get opportunities to enter the Chinese market in order to achieve huge profits. Arab countries have a unique opportunity to strengthen ties with the Chinese market. For future prosperity and stability, Arab countries must not miss this opportunity. (End)
