On November 21, 2023, China and Saudi Arabia solidified their economic partnership by entering into a local-currency swap agreement amounting to approximately $7 billion. This move comes at a time when nations in the Middle East and emerging markets are actively seeking avenues to divert a greater portion of their non-oil trade away from the US dollar.
The central banks of both countries formalised a three-year arrangement, allowing for a maximum exchange of 50 billion yuan or 26 billion riyals, as indicated in the statements.
In its ongoing efforts to enhance the yuan’s global role in transactions with major energy and commodity exporters, China stands as Saudi Arabia’s most significant trade partner. The currency swap agreement, facilitated by the People’s Bank of China, is anticipated to fortify financial collaboration and streamline trade and investment between the two nations. Läs artikel