The separation of Saudi oil from the US dollar; Strategic transformation in political economy

According to the international group Tasnim news agency, America and Saudi Arabia are in parallel negotiations Regarding the security agreement, negotiations regarding the extension of the strategic agreement to determine the price of Saudi oil based on the US dollar are also on the table. However, Arab and Western media reports indicate a deadlock in these negotiations and the failure to reach an agreement.

Al-Khalij Online website in a report pointing out that the 50-year agreement between Saudi Arabia and Regarding the purchase of oil in dollars, which was concluded in 1974 and will expire in June this year, the United States announced that the negotiations regarding its extension have stopped.

This media pointed out that Saudi He does not want his oil transactions to be only with US dollars, he claimed that Saudi Arabia is interested in being able to conduct oil transactions with euros, yuan, yen and digital currencies.

America and Saudi Arabia After the oil shock of 1971 and the decision of Richard Nixon, the president of the United States at the time, to end the relationship between the dollar and gold in the world economy, they signed an agreement based on which Saudi oil transactions would be done only in dollars. This strategic agreement caused the US dollar to become the main currency for exchanges in the global energy market as the most important area of ​​international trade, and in return Saudi security was guaranteed by Washington.  

Al-Khalij, referring to the cooperation of the Saudi Central Bank with the CBDC Bank and the Mbridge platform, clarified that this joint plan is to create a valid cryptocurrency for international exchanges.  

Business Insider in a report referring to the non-renewal of the 50-year contract to determine the price of Saudi oil in dollars and its negative impact on the economic power of the United States, the non-renewal This agreement was described by Saudi as a change in the global economic paradigm.

Thomas Friedman, a columnist of the Washington Post, also tweeted, pointing out that the discussion of the extension of the 1974 agreement regarding the exchange of oil with dollars It is one of the clauses mentioned in the strategic agreement between the United States and Saudi Arabia, he emphasized that this clause of the agreement has not been finalized yet. In exchange for normalizing relations with the Zionist regime and reducing relations with China, benefit from the military umbrella of the United States (along with NATO members, Japan and South Korea), cooperation in the field of nuclear and weapons technology. However, these negotiations have reached a dead end as a result of the United States’ unwillingness to bring Saudi Arabia under the umbrella of military support, as well as not allowing nuclear enrichment.

The major part of these exchanges is related to the field of oil, gas and condensate. The non-renewal of the dollar as the basis for determining the price of Saudi oil, which is considered the largest exporter in the market, can be a significant blow to the credibility of the dollar as a global currency and damage the economic power of the United States.

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