Saudi Arabia and China have increased their cooperation in the last few years in different sectors, including energy collaboration and BRICS.
During Chinese President Xi Jinping’s last visit to Riyadh on 7/12/2022, he presented to Saudi Crown Prince Mohammad Bin Salman (MBS) the idea of adopting the Chinese Yuan as the main currency for oil trades between Riyadh and Beijing.
Although MBS initially welcomed this Chinese proposal, it seems that he is now having second thoughts.
This note highlights the following key aspects:
- MBS views on adopting a full scale yuan oil trade
- His thoughts on granting China flexibility in oil sales
- His stance on riyal-dollar peg
This note also sheds light on the Kingdom’s outlook regarding the de-dollarization of oil trades.
