Originally Posted by
Bluesteal
Most countries in 1973 had no choice. Saudi and OPEC can call the shots now. So, most countries may not have a choice. But, my original post said it would be the 1st step at 25%. Just 25% of Oil exports from Saudi in Yuan would be HUGE dent in the dollar dominance around the world. It would be a domino effect. As the dollar continues to depreciate as it is now, it is reducing the revenue of the Saudi's. And, no other country can follow China because it is an agreement made by the Saudis and OPEC countries. They decide. No country can just say "hey, i want to buy your oil, but Im not paying you in dollars or yuan, im giving you my currency". Its like going into a store in your hometown and trying to pay for milk with M&M's You get laughed out of the store. But, finally the petro-dollar is what gave the US the power to print money and export the dollar. This will make us default. Whats sad it that nobody is talking about this, they will just blame the war in Russia/Ukraine for why we collapse..
But i the question still remains: if given the choice of whether to use the dollar or yuan for oil purchases, why would any other country choose the yuan and support Chinese yuan becoming the dominant currency. It seems like for most countries in the world, China calling the shots would be a much worse option. And i wasn’t saying other countries can just decide to use their own currencies, but they request the same talks that China is having now. I could definitely see the EU collectively trying to make the same kind of deal when they see opec being open to accepting other currencies than the dollar.