Will Saudi Arabia End the Dollar’s Dominance?
Saudi Arabia helped the United States dollar rise to dominance; it may now help end the same. Saudi Arabia announced on January 17 that it is open to discussions about trade in currencies other than the U.S. dollar. The announcement could cause a ripple effect to the detriment of the dollar’s status as reserve currency. Saudi Arabia, by far the largest crude oil exporter in the world, has fixed its currency to the dollar for decades. But this could now change.
There are no issues with discussing how we settle our trade arrangements, whether it is in the U.S. dollar, whether it is the euro, whether it is the Saudi riyal.
—Mohammed al-Jadaan, Saudi finance minister
Friend of China: On December 8, Chinese General Secretary Xi Jinping signed a strategic partnership agreement with Saudi Arabia. China currently accounts for a quarter of Saudi Arabia’s crude exports and wants to pay in yuan. This would diminish the U.S.’s economic strength and geopolitical influence.
Friend of Russia: After Europe closed down the oil trade with Russia, Saudis sold more of their own oil at a higher price and imported Russian oil for use at home. “There is little chance that Brussels or Washington can convince Saudi Arabia to move away from Russia,” Forbes noted last August. “They will continue with the Russian imports while selling their premium oil to a fearful Europe, with a penchant for self-harm.”
- Saudi Arabia’s willingness to cooperate with U.S. enemies is one of many signs that it is no longer interested in helping uphold the dollar as a reserve currency.
A dangerous economic ripple effect: More and more nations seek to back their currency by gold (read “BRICS Works to Undermine Dollar Hegemony” and “Will Europe Bring Back the Gold Standard?”). They are testing modern blockchain technologies and digital currencies to conduct trade independent from the dollar. They are trading in their own currency. All of this shows that the world is getting ready to cut ties with the U.S. These nations will likely welcome Saudi Arabia’s decision, dump their dollar reserves, and conduct trade in their own or other currencies.
- Central banks around the world are buying dollars to conduct international trade. But if they could use their own currency to purchase oil and other goods, those dollars would lose value.
- In the last few years, the U.S. has printed trillions of dollars, trusting that the global market would welcome them. But once dollars will stop flowing to Saudi Arabia and other countries and start flowing back into the U.S., inflation will soar causing an economic crisis.
The final outcome: The Bible reveals with certainty that the U.S. will fall. The late Herbert W. Armstrong boldly proclaimed that the U.S. economic collapse would proceed this fall. As Trumpet editor in chief Gerald Flurry explained in “A Bold Warning: America’s Economic Collapse,” Mr. Armstrong specifically forecast that a banking crisis in the U.S. would trigger Europe’s unification and that this united Europe would turn against America. Isaiah 23 prophesies of an economic alliance between Asia and Europe that will besiege America. Psalm 83 prophesies of another sinister alliance that seeks to blot out the name of Israel altogether—referring mainly to the United States, Britain and the Jewish nation in the Middle East.
A number of recent events are leading to the fulfillment of these prophecies. To understand them in their prophetic context, read He Was Right.