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 <p>BRICS members China and Saudi Arabia have kick-started the de-dollarization efforts by keeping the US dollar out for cross-border transactions. China and Saudi Arabia officially signed a $7 billion currency swap deal that favors their local currency the riyal and yuan. The three-year agreement allows trade to be settled in local currency with a cap of 50 billion yuan or 26 billion riyals. Therefore, the US dollar will play no role in trade for up to $7 billion between the two BRICS members.</p>
 <p><strong>Also Read: Argentina to Decline BRICS Membership &amp; Support US Dollar</strong></p>
 <p>The trade deal is more symbolic than an agreement indicating <a rel="noopener noreferrer nofollow" title="Saudi Arabia" href="https://thebittimes.com/tag/saudi-arabia.html">Saudi Arabia</a>’s willingness to step away from the US dollar. China is on a campaign to convince other countries to trade in local currency and end reliance on the US dollar.</p>
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 <p>The Xi Jinping administration is internationalizing the Chinese <a rel="noopener noreferrer nofollow" title="Yuan" href="https://thebittimes.com/tag/yuan.html">Yuan</a> in an attempt to dethrone the US dollar’s global reserve currency status. Signing a $7 billion currency swap deal with <a rel="noopener noreferrer nofollow" title="Saudi Arabia" href="https://thebittimes.com/tag/saudi-arabia.html">Saudi Arabia</a> is a big milestone in the de-dollarization initiative.</p>
 <p><strong>Also Read: Germany to Launch Digital Euro to Counter BRICS Currency?</strong></p>
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 <p>Additionally, China has already signed a currency swap agreement with new BRICS member Argentina early this year. Therefore, China is now the flag-bearer of the de-dollarization initiative and is advancing in its motive of a dollar-free world.</p>
 <h2 class="wp-block-heading" id="h-brics-china-amp-saudi-arabia-s-currency-swap-deal-to-limit-us-dollar-usage-up-to-7-billion">BRICS: China &amp; Saudi Arabia’s Currency Swap Deal to Limit US Dollar Usage Up to $7 Billion</h2>
 <figure class="wp-block-image size-large"><img decoding="async" width="1024" height="683" src="data:image/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==" alt="saudi arabia mbs china xi jinping brics" class="wp-image-94207 ewww_webp" sizes="(max-width: 1024px) 100vw, 1024px" data-src-img="https://cdn.thebittimes.com/images/2023/11/21/10c4c7adfcef9b615c7825188a3f4d74.webp" data-src-webp="https://cdn.thebittimes.com/images/2023/11/21/10c4c7adfcef9b615c7825188a3f4d74.webp.webp" data-srcset-webp="https://cdn.thebittimes.com/images/2023/11/21/10c4c7adfcef9b615c7825188a3f4d74.webp.webp 1024w, https://cdn.thebittimes.com/images/2023/11/21/10c4c7adfcef9b615c7825188a3f4d74.webp.webp 300w, https://cdn.thebittimes.com/images/2023/11/21/10c4c7adfcef9b615c7825188a3f4d74.webp.webp 768w, https://cdn.thebittimes.com/images/2023/11/21/10c4c7adfcef9b615c7825188a3f4d74.webp.webp 1536w, https://cdn.thebittimes.com/images/2023/11/21/10c4c7adfcef9b615c7825188a3f4d74.webp.webp 380w, https://cdn.thebittimes.com/images/2023/11/21/10c4c7adfcef9b615c7825188a3f4d74.webp.webp 550w, https://cdn.thebittimes.com/images/2023/11/21/10c4c7adfcef9b615c7825188a3f4d74.webp.webp 800w, https://cdn.thebittimes.com/images/2023/11/21/10c4c7adfcef9b615c7825188a3f4d74.webp.webp 1160w, https://cdn.thebittimes.com/images/2023/11/21/10c4c7adfcef9b615c7825188a3f4d74.webp.webp 1920w" data-srcset-img="https://cdn.thebittimes.com/images/2023/11/21/10c4c7adfcef9b615c7825188a3f4d74.webp 1024w, https://cdn.thebittimes.com/images/2023/11/21/10c4c7adfcef9b615c7825188a3f4d74.webp 300w, https://cdn.thebittimes.com/images/2023/11/21/10c4c7adfcef9b615c7825188a3f4d74.webp 768w, https://cdn.thebittimes.com/images/2023/11/21/10c4c7adfcef9b615c7825188a3f4d74.webp 1536w, https://cdn.thebittimes.com/images/2023/11/21/10c4c7adfcef9b615c7825188a3f4d74.webp 380w, https://cdn.thebittimes.com/images/2023/11/21/10c4c7adfcef9b615c7825188a3f4d74.webp 550w, https://cdn.thebittimes.com/images/2023/11/21/10c4c7adfcef9b615c7825188a3f4d74.webp 800w, https://cdn.thebittimes.com/images/2023/11/21/10c4c7adfcef9b615c7825188a3f4d74.webp 1160w, https://cdn.thebittimes.com/images/2023/11/21/10c4c7adfcef9b615c7825188a3f4d74.webp 1920w" data-eio="j">
  <noscript><img decoding="async" width="1024" height="683" src="https://cdn.thebittimes.com/images/2023/11/21/10c4c7adfcef9b615c7825188a3f4d74.webp" alt="saudi arabia mbs china xi jinping brics" class="wp-image-94207" srcset="https://cdn.thebittimes.com/images/2023/11/21/10c4c7adfcef9b615c7825188a3f4d74.webp 1024w, https://cdn.thebittimes.com/images/2023/11/21/10c4c7adfcef9b615c7825188a3f4d74.webp 300w, https://cdn.thebittimes.com/images/2023/11/21/10c4c7adfcef9b615c7825188a3f4d74.webp 768w, https://cdn.thebittimes.com/images/2023/11/21/10c4c7adfcef9b615c7825188a3f4d74.webp 1536w, https://cdn.thebittimes.com/images/2023/11/21/10c4c7adfcef9b615c7825188a3f4d74.webp 380w, https://cdn.thebittimes.com/images/2023/11/21/10c4c7adfcef9b615c7825188a3f4d74.webp 550w, https://cdn.thebittimes.com/images/2023/11/21/10c4c7adfcef9b615c7825188a3f4d74.webp 800w, https://cdn.thebittimes.com/images/2023/11/21/10c4c7adfcef9b615c7825188a3f4d74.webp 1160w, https://cdn.thebittimes.com/images/2023/11/21/10c4c7adfcef9b615c7825188a3f4d74.webp 1920w" sizes="(max-width: 1024px) 100vw, 1024px">
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   Source: CNBC
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 <p>The new <a rel="noopener noreferrer nofollow" title="BRICS" href="https://thebittimes.com/tag/brics.html">BRICS</a> member <a rel="noopener noreferrer nofollow" title="Saudi Arabia" href="https://thebittimes.com/tag/saudi-arabia.html">Saudi Arabia</a> is the world’s largest oil exporter. If China and <a rel="noopener noreferrer nofollow" title="Saudi Arabia" href="https://thebittimes.com/tag/saudi-arabia.html">Saudi Arabia</a> use the agreement to settle oil trade, then other developing countries could follow suit. Read here to know how many sectors in the US will be affected if <a rel="noopener noreferrer nofollow" title="BRICS" href="https://thebittimes.com/tag/brics.html">BRICS</a> stops using the dollar.</p>
 <p><strong>Also Read: Gold Price Prediction Nov 2023: Will It Rise to $2,100 or Dip $1,900?</strong></p>
 <p>The US dollar is the de facto currency for oil and the BRICS members are now looking to change the way oil trade is settled. The move will strengthen the native economies of developing countries and give their local currencies a boost in the markets. In conclusion, the US dollar has more challenges to face in the coming years from BRICS and other developing nations.</p>
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<div class="cs-entry__tags">
 <ul>
  <li>BRICS</li>
  <li>china</li>
  <li>Riyal</li>
  <li>Saudi Arabia</li>
  <li>US DOLLAR</li>
  <li>Yuan</li>
 </ul>
</div>
<p>Source: <a rel="noopener noreferrer nofollow" target="_blank" href="https://thebittimes.com/brics-china-saudi-arabia-sign-7-billion-currency-swap-deal-tbt71010.html">https://thebittimes.com/brics-china-saudi-arabia-sign-7-billion-currency-swap-deal-tbt71010.html</a></p>

BRICS: China & Saudi Arabia Sign $7 Billion Currency Swap Deal

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