SpreadsheetAg said:Its a negotiating tactic right out of Trump's Art of the Deal --- be prepared to walk.one MEEN Ag said:
The Saudi's own currency is pegged to the dollar. Doing this will destabilize its own currency. Also, as a petrostate, Saudi is wise to choose to peg their currency to a superpower. If they don't then their ability to trade is directly pegged to the price of oil. Look at Russia, whenever the price of oil goes down, Russia losses purchasing power internationally. (Pre Sanctions)
It is a continuation of a long term trend by China and others to move away from the dollar.