The start of a new global monetary order?

In a recent meeting between Saudi and Chinese leaders, there was an agreement to use the Chinese currency, Yuan, in oil transactions. A report from the Bank of China stated that the yuan accounted for nearly 19% of Saudi oil imports between January and September last year, compared to less than 2% in 2021. A similar agreement has been reached between Iraq and China. <br><br>Historically, the dollar has a strong presence in international trade, including oil trading, as countries like Saudi Arabia have pegged their currency to the dollar and used it as a standard for oil pricing. This has given the US significant influence in international monetary policy. <br><br>Some experts see this development as a potential threat to the dollar's status as the global reserve currency. They argue that China's growing economic influence and its efforts to promote the use of the yuan in international transactions could gradually erode the dollar's dominance. <br><br>The shift to the yuan could have far-reaching implications on various aspects, including exchange rates, trade dynamics, and the global monetary system. <br><br>*Guest post courtesy of @FinancialTuttle.*