The economic constellations are changing dramatically.

The Wall Street Journal reports Saudi Arabia wants to sell oil to China in yuan.

Saudi Arabia considers accepting yuan instead of dollars for oil sales*

 

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Converting millions of barrels of oil from dollars to yuan each day could shake the Saudi economy, whose currency, the rial, is pegged to the dollar. Prince Mohammed's advisers warn him of unpredictable economic losses if he rushes the plan.

Increasing sales in yuan would more closely link Saudi Arabia to the Chinese currency, which has not caught on with international investors because of the tight control Beijing maintains over it. Contracting oil sales in a less stable currency could also undermine the Saudi government's fiscal outlook."

 

Meanwhile, when Russia officially disassociated itself from the U.S. dollar and the euro, Russia's state-owned bank VTB Bank offered its customers to open savings accounts in Chinese yuan with maximum interest rate 8% . The country's second largest bank has been hit by Western sanctions aimed at completely isolating Russia financially in the wake of its war in Ukraine.

 

" In light of the rising dollar and euro exchange rates, many clients are showing interest in investing in other currencies, and the yuan is one of the cheapest and most promising options for investing funds " the bank stated in a statement.

 

The value of the yuan is rising faster than the euro and the dollar. Since the start of the war, its price has risen almost 10% when the euro and dollar about 5%:

 

 

There is a currency castling in the world and it seems that the US will have to attack Russia to keep the dollar from collapsing.

But we may not know something that will further change the balance of political power in the world.

 

 

https://www.wsj.com/articles/saudi-arabia-considers-accepting-yuan-instead-of-dollars-for-chinese-oil-sales-11647351541?mod=Searchresults_pos1&page=1