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Professor Ashok Swain of Uppsala University\u2019s Department of Peace and Conflict Research says Saudi Arabia joining the BRICS economic bloc \u201cwould accelerate the bilateral trading being conducted using the yuan as the trading currency.\u202f\u201d<\/strong><\/p>\n Ashok Swain, a professor of peace and conflict research at Uppsala University in Sweden, told Al-Monitor last week that Saudi Arabia joining the BRICS economic bloc would accelerate the use of the Chinese yuan as a trading currency. Professor Swain is head of Uppsala University\u2019s Department of Peace and Conflict Research. He is also the UNESCO chair on International Water Cooperation.<\/p>\n Commenting on Saudi Arabia joining the Shanghai Cooperation Organization (SCO) and the BRICS, which comprises Brazil, Russia, India, China, and South Africa, he said:<\/p>\n There is no doubt that Saudi Arabia becoming a member of China-dominated SCO and BRICS would accelerate the bilateral trading being conducted using the yuan as the trading currency.<\/p>\n<\/blockquote>\n In March, Saudi Arabia became a dialogue partner<\/a> of the SCO. The Shanghai Cooperation Organization was established in 2001 as a political, economic, and defense alliance; it is the world\u2019s largest regional organization. Saudi Arabia is not yet a member of the BRICS group but the country has expressed interest in joining. Last month, Russian President Vladimir Putin and Saudi Crown Prince Mohammed bin Salman Al Saud discussed<\/a> potential collaboration between Saudi Arabia and the BRICS.<\/p>\n Meanwhile, Saudi Arabia is actively negotiating with Beijing to price some of its oil sales to China in yuan, according to reports. While the discussions regarding yuan-priced oil contracts have been taking place on and off for six years between the two nations, they have intensified this year. The Uppsala professor noted that oil trade in yuan will be a \u201chuge step\u201d for China and \u201ca significant setback to the dollar\u2019s standing.\u201d<\/p>\n A growing number of countries are shifting away from using U.S. dollars to settle trades. China\u2019s yuan recently replaced the USD as the most traded currency in Russia<\/a> as well as the most used<\/a> currency to settle cross-border payments in China.<\/p>\n The BRICS group is also working to create a new currency<\/a> that would reduce its member countries\u2019 reliance on the U.S. dollar. A former White House economist believes that a BRICS currency will erode the U.S. dollar\u2019s dominance<\/a>. Another economist predicted that the yuan and euro<\/a> will disrupt the U.S. dollar\u2019s dominance and the three will form a tripolar reserve currency world.<\/p>\nHow Saudi Arabia Joining BRICS Could Boost Use of Chinese Yuan<\/h2>\n
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