Saudi Arabia Declares it Open to Trade with Other Currencies

• Saudi Arabia has no issues with discussing how they settle trade arrangements.
• Al-Jadaan sted that the country plans to invest $10 billion in Pakistan.

The kingdom of Saudi Arabia, whose currency has been pegged to the dollar, seeks to strengthen its ties with prominent trading partners such as China. Finance Minister Mohammed Al-Jadaan announced that the country is open to talking about trading in currencies other than the US dollar. 

Saudi Arabia Seeks to Developments

Saudi Arabia is the world’s largest oil exporter and a foothold of the 1970s-era petrodollar system that depends on pricing crude exports in US dollars. Additionally, Al-Jadaan, pointed out that they don’t have any issues with discussions about their trade settlement processes, whether that involves the US currency, the euro, or the Saudi riyal.

Also, Mohammed Al-Jadaan stated on January 17 in a Bloomberg TV interview at the World Economic Forum 2023 at Davos;

I don’t think we are waving away or ruling out any discussion that will help improve the trade around the world. 

According to the finance minister of the kingdom, Saudi Arabia is working with multi-party and regional organizations to promote Turkey, Pakistan, and Egypt through investments in these countries. Al-Jadaan also plans to spend $10 billion in Pakistan and intends to provide Pakistan with more innovative funding. Late last year, the kingdom increased the $3 billion deposit to strengthen its foreign currency reserves, and it is currently looking into the possibilities to raise the investments. 

Further, Saudi Arabia also has a potential interest in cryptocurrencies. In September, the country’s banking regulator appointed Mohsen AlZahrani to lead its virtual assets and central bank digital currency.