Mohammed Al-Jadaan, the finance minister of Saudi Arabia, stated the country is open to dealing in currencies other than the U.S. dollar after having a 48-year association with only that currency. The declarations come after Chinese President Xi Jinping urged Gulf monarchs to accept yuan in exchange for oil and officials from Riyadh said their nation will think about using the Chinese currency in March.
Saudi Arabia’s Move Away from US Dollar Signals Changing Economic Landscape
The 2023 World Economic Forum took place this week in the Swiss Alpine town of Davos, and Mohammed Al-Jadaan, the finance minister of Saudi Arabia, spoke to Bloomberg TV on Tuesday. When he declared that Saudi Arabia is open to trading in foreign currencies, Al-Jadaan shocked the media. There are no concerns with talking about how we settle our trade agreements, whether it be in US dollars, euros, or Saudi riyals, according to Al-Jadaan. Added the finance minister:
I don’t believe we are avoiding or excluding any conversation that could enhance global commerce.
The comments made by the Saudi Arabian finance minister have been seen as a further move away from the dollar.