Saudi Arabia is open to settling trade in currencies other than the US dollar, the kingdom’s finance minister said on Tuesday.
“There are no issues with discussing how we settle our trade arrangements, whether it is in the US dollar, whether it is the euro, whether it is the Saudi riyal,” Mohammed Al-Jadaan told Bloomberg TV in an interview in Davos.
“I don’t think we are waving away or ruling out any discussion that will help improve the trade around the world,” Al-Jadaan added.
Saudi Arabia open to settling trade in currencies besides dollar to bolster international ties
The move comes as the world’s leading oil exporter attempts to strengthen ties with key trading partners such as China. The kingdom is the backbone of the petrodollar system, which was formed in the 1970s and is based on pricing crude exports in US dollars.
During the visit of China’s President Xi Jinping to Riyadh last year, the countries reached an agreement to improve cooperation on energy policy and exploration. During that trip, Xi stated that China will further make efforts to purchase more oil from the Middle East and that the trade would be settled in yuan.
“We enjoy a very strategic relationship with China and we enjoy that same strategic relationship with other nations including the US and we want to develop that with Europe and other countries who are willing and able to work with us,” the finance minister informed.
Saudi Arabia provides financial support to vulnerable countries
Moreover, Saudi Arabia is also collaborating with multilateral institutions to offer support to Pakistan, Turkey, and Egypt. This support is part of the kingdom’s generosity to vulnerable countries, Al-Jadaan added.
“We are investing heavily in these countries and will continue to look for opportunities to invest,” Al Jadaan stated. “It’s very important to bring stability.”
The minister informed that his country was planning to invest $10 billion in Pakistan. They already offered a $3 billion deposit to strengthen its foreign-currency reserves in 2022. According to the report, Saudi Arabia is currently exploring the possibility of increasing the funding.
“We are providing even oil and derivatives to support their energy needs,” Al Jadaan said. “So there is a lot of efforts, but we wanted this to be conducted.”
