How will Saudi Arabia accepting other currencies affect us
Saudi Arabia was the US’s secret weapon.
In 1945, the Bretton Woods Agreement made the US Dollar the main reserve currency of the world based on the assumption that the US owned the most gold.
Then, when the US decoupled the dollar from gold, it forged a deal with Saudi Arabia. Saudi Arabia agreed to accept no other currency for their oil but the US Dollar.
Now, Saudi Arabia is changing that. It has been accepted by the BRICS nations along with five other countries. The new members are Saudi Arabia, Iran, Ethiopia, Egypt, Argentina, and the United Arab Emirates (UAE). These six new members will push BRICS’ gross domestic product to 36% of global GDP and 48% of the world’s population.
Saudi Arabia, Iran, and UAE are the most important additions as these three countries produce 20% of the world’s oil.
South African finance minister Enoch Godongwana said that they are not going to create a new BRICS currency but they are pursuing local currencies, payment instruments, and platforms. The intention is to strengthen the currencies of each country by trading using their local currencies. The platform will allow for the swift facilitation of the process.
Godongwana said they aren’t ready for a unified currency but there could be another layer to this. All Godongwan is saying is that it is too early for a BRICS currency. He emphasized the importance of currency inclusion in the global financial system. After years of smooth trade with local currencies, a unified currency may be the next natural step.
Saudi Arabia, UAE and Iran agreeing to accept a BRICS member currency will strengthen each of the members’ economies. That will be the real threat to the US.
Be ready for the future because it will be bumpy. When the US Dollar starts coming home from its use abroad, it will cause another surge of inflation. LINK
Mnt Goat …I have to tell you the currency rate of 1/6 of a penny (IQD 1320 = USD 1) absolutely does not reflect the currency rate of the dinar. It is being “artificially suppressed”! But most importantly…many other financial wizards, much more knowledgeable than I, also feel this way. To make a very good comparison one only needs to compare Iraq to Kuwait to see the imbalance and inequity happening (KWD 1 = USD 3.45).
Frank26 Suandi keeps repeating once security is stabilized and established and is firmly in place you are going to see the explosion of your currency/new exchange rate…It’s many that are helping Sudani return wealth back to [Iraq]. To do this special type of cleaning for the new exchange rate took a coordinated effort of many countries…All those countries that have helped bring back millions and trillions that were stolen by the corruption of the past decades they are all pitching in to help Sudani because they know what’s about to happen to your monetary reform…The whole world wants Iraq and the pain of waiting is coming to an end…
September 9, 2023
Punish the United States! Saudi Arabia and Russia join forces to cut oil production!
In this video, we delve into the significant developments involving two major players in the oil export arena, Saudi Arabia and Russia.
Their bold decisions to cut oil production in collaboration with OPEC+ are poised to reshape the world oil market. Join us as we explore the complexities of this pivotal move and its potential impact on the global economy.