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Goldman Admits Saudi-China Oil-Trade Signals ‘Erosion’ of Dollar Reserve Status

By Tyler Durden | 21 March 2022

ZERO HEDGE — Following The Wall Street Journal’s recent report that Saudi Arabia is considering pricing some of its oil sales to China in Yuan, the question of the dollar’s status as global reserve currency has bubbled back to ‘top of mind’ for many longer-term investors.

As Goldman Sachs’ Farouk Soussa notes in a report today, these steps are not entirely surprising: over time, currency choice tends to be driven in part by economic ties and partly by geopolitical alliances, and China has become a more important economic partner as its economy develops and imports more oil, while at the same time geopolitical developments perhaps demonstrate the attractiveness of a more diversified currency set.

There are still important barriers to making a large shift, but the petrodollar has been a key underpinning to the Dollar’s reserve status over the last 50 years, so developments in this sphere are important to watch. […]

1 Comment on Goldman Admits Saudi-China Oil-Trade Signals ‘Erosion’ of Dollar Reserve Status

  1. I’m guessing the CBs and their owner/manipulators have already decided it’s time to bail on the dollar, just as they have in the past on other reserves.

    The current hiking of US bonds has just now been primed on the basis of ‘brave’ statements by the Fed, which will allow them to be ‘plumped and dumped’ (is that the right term? something like..) in the near future, thus allowing the maximum siphoning off of ordinary investors’ cash into the usual hands, to be transferred to their next golden egg-laying goose.

    The usual scam, you just never believe it can happen to you..

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