Amid deepening global geopolitical tensions, the recent currency swap agreement between Saudi Arabia and China is the latest in a series of initiatives that seek to put pressure on the dollar’s central role within international trade.
Last month, the People’s Bank of China (PBOC) and the Saudi Central Bank signed a three-year currency swap agreement worth Rmb50bn ($6.93bn) or SR26bn. According to a statement by the PBOC, the deal is designed to help the two countries strengthen their financial co-operation and boost the use of local currencies, while also promoting trade and investments.
