Friday, June 14, 2024

Saudi Arabia Won't Be Renewing Its 50-Year Petro-Dollar Deal With The US

 Saudi Arabia has refused to renew its 50 year old petro-dollar agreement with the United States.

TBS News reports: Originally signed on 8 June 1974, the deal established two joint commissions, one based on economic cooperation and the other on Saudi Arabia's military needs.

American officials at the time expressed optimism that the deal would motivate Saudi Arabia to ramp up its oil production.

The crucial decision to not renew the contract enables Saudi Arabia to sell oil and other goods in multiple currencies, including the Chinese RMB, Euros, Yen, and Yuan, instead of exclusively in US dollars.

In a more recent move, Saudi Arabia has announced its involvement in Project mBridge, a project which explores a multi-central bank digital currency platform shared among participating central banks and commercial banks.

The project has more than 26 observing members including the South African Reserve Bank, which was greenlighted as a member this month.

The better known observing members of mBridge are those of the Bank of Israel, Bank of Namibia, Bank of France, Central Bank of Bahrain, Central Bank of Egypt, Central Bank of Jordan, European Central Bank, the International Monetary Fund, the Federal Reserve Bank of New York, the Reserve Bank of Australia, and the World Bank. 

https://thepeoplesvoice.tv/saudi-arabia-wont-be-renewing-its-50-year-petro-dollar-deal-with-the-us/

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