Saudi Arabia Open to Trading in Currencies Other Than US Dollar, Signaling a Shift Toward De-Dollarization – Economics Bitcoin News
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The Kingdom of Saudi Arabia is signaling a major shift in its currency policy, with plans to open up to trading in currencies other than the US dollar. This move is part of a larger global trend of de-dollarization, which is occurring as countries seek to reduce their reliance on the US dollar and diversify their currency holdings.
The Saudi Arabian Monetary Authority (SAMA) announced that it would be allowing foreign exchange companies to trade in currencies other than the US dollar, beginning in April 2021. This marks a major shift in the country’s long-standing policy of exclusively using the US dollar for all foreign exchange transactions. SAMA has stated that the move is intended to diversify the country’s currency holdings and reduce its reliance on the US dollar.
The move has been welcomed by economists, who have long argued that the US dollar’s status as the world’s reserve currency has created an economic imbalance. The US dollar’s dominance in international trade has caused other currencies to suffer from a lack of liquidity, making it difficult for countries to access the foreign exchange markets. The Saudi Arabian move is part of a larger trend of de-dollarization, with other countries such as Russia and China also reducing their reliance on the US dollar.
The move is also good news for the cryptocurrency industry, as it could open up new opportunities for crypto-assets to be used in international trade. Saudi Arabia is home to a number of major cryptocurrency exchanges, and the de-dollarization of its currency markets could make it easier for these exchanges to facilitate international transactions.
Overall, Saudi Arabia’s move to de-dollarize its currency markets is a positive step towards a more balanced global economy. It is likely to be welcomed by other countries that are looking to reduce their reliance on the US dollar, and could open up new opportunities for the cryptocurrency industry.
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