Saudi Arabia May Abandon Dollar: What it Means for Crypto

• Saudi Arabia's Potential Departure from US Dollar Draws Caution from Ex-US Official
• Saudi Arabia's Newfound Motivation
• BRICS' Role in the Global Power Structure
• Insights from a Former US Official
• BRICS-led De-dollarization: Cause for Alarm?
• BRICS Expansion and the US Dollar

Saudi Arabia's Potential Departure from US Dollar Draws Caution from Ex-US Official

As the BRICS (Brazil, Russia, India, China, South Africa) nations continue to advance their de-dollarization agenda, warnings have been issued about the potential fallout from Saudi Arabia distancing itself from the US dollar. Former US State Department Official, Thomas Hill, has highlighted the pivotal role of this Middle Eastern nation in the strategy of the economic alliance to undermine US dollar supremacy.

Saudi Arabia's Newfound Motivation

According to Hill, Saudi Arabia's recent admittance into the BRICS alliance could serve as a significant drive in this economic shift. The potential implications of this move, paired with similar steps undertaken by the United Arab Emirates (UAE), could be substantial. Both countries were featured in the Alliance's 2023 expansion blueprint, potentially making them crucial players in the de-dollarization movement heading into 2024.

BRICS' Role in the Global Power Structure

Over the past year, BRICS' role in the global political scene has evolved greatly. The alignment of global power has experienced a noticeable shift recently, with BRICS enacting a critical expansion strategy that welcomed five new countries into its fold. Now, concerns are being raised over the repercussions this could have for the West.

Insights from a Former US Official

Particularly, amid BRICS' de-dollarization efforts, warnings have been sounded regarding the impact of Saudi Arabia abandoning the US dollar on a global scale. Hill highlighted the worrying implications of de-dollarization, a concern that has been augmented with the addition of new members to the expansion.

BRICS-led De-dollarization: Cause for Alarm?

The BRICS-led de-dollarization effort should alarm US policymakers, particularly in the light of the recent BRICS membership expansion, Hill said. He mentioned traditional US allies like Egypt, Saudi Arabia, and the UAE, who are already studying ways to de-dollarize. Beijing, he noted, is certainly aiding this process.

BRICS Expansion and the US Dollar

When the expansion was initiated, Saudi Arabia and the UAE were integral inclusions. Their collective relationship with the United States sparked significant geopolitical consequences. As these nations continue to participate, these implications are likely to continue to proliferate. With a potential BRICS currency announcement on the horizon in 2024, the US dollar could face heightened opposition.

Edited by Jonathan Stoker