Saudi Arabia has entered a trade alliance with China, Russia, India, Pakistan, and four central Asian nations. Moreover, the development arrives after news of the first yuan-settled energy trade, further lessening international reliance on the US dollar.

Specifically, CNBC reported that Saudi Arabia’s cabinet has approved a recent memorandum to take steps toward joining the China-led security bloc. Additionally, the report notes that the move strengthens “Riyadh’s eastern ties in a further step away from U.S. interests.”

Saudi Arabia Joins Chinese Trade Alliance

The past few weeks have highlighted the growing concern over the US and de-dollarization. Moreover, as the budding banking crisis continues and various macroeconomic circumstances abound, along the debt ceiling remaining a concern, international trade is seeking other avenues outside of the US dollar.

Now, following news of the first yuan-settled trade agreement, these steps have become clearly pronounced. Specifically, Saudi Arabia has taken notable steps toward joining a trade alliance with China, Russia, India, Pakistan, and four central Asian nations.

The Saudi cabinet approved a memorandum that awarded “Riyad the status of dialogue partner in the Shanghai Cooperation Organization,” according to CNBC. Subsequently, the joint coordination is a “political and security trade alliance,” that is led by China.

The decision to join the SCO reported, “falls short of full membership,” but continues expanding Riyadh’s interest toward the East. Conversely, the decision follows a deal made in March for both Saudi Arabi and Iran to “resume diplomatic relations and reopen embassies in each other’s countries.

Leave a Reply

Your email address will not be published. Required fields are marked *