They just asked the USA to bail them out financially.
Tressa_colzione on
What stop USA blockage them if they do that?
MastodonParking9080 on
So making yuan appreciate and their exports uncompetitive in a time where they are relying on exports to offset involution?
Duchess430 on
So this is basically the UAE saying, hey, we don’t really want to be your ally anymore if you’re gonna keep doing this shit. That’s really the only reason the US invests heavily in the Middle East is the petrol dollar.
This is them just saying, look, we have options.
DateMasamusubi on
The US Petrodollar stopped being a thing when shale oil and fracking came into vogue 10-15 years ago. The US doesn’t import as much oil from the Middle East as it used to historically (currently at 1/4 average from 2 decades ago).
Yuan is floated about but it isn’t a strong contender for Gulf oil states. Why? Because China lacks property rights that Western nations (Dollar/Euro) possess. They can sell their oil and transact in Yuan but they want Dollar/Euro holdings and in turn, investments and properties which are protected by laws and legal tradition. But that is the crux of the problem, if the US isn’t buying oil, GCC ability to get Dollars is reduced.
The GCC states have various levels of investments and projects to earn hard currency, Kuwait not as much (they don’t have a major airline like Qatar/Emirates as an example). But the cash infusion from oil trade is immediate and massive so they want the US to import more energy.
SunChungShan on
Even Taiwan is seeking for closer ties with China with their KMT chairwoman paying a visit to Xi. Crazy times when Taiwan inches closer to its arch-nemesis away from its closest ally
Plane-Breakfast-8817 on
Iran is already selling a large portion of its oil to China in yuan or yuan-linked structures.
There are confirmed cases of third parties settling Iranian oil in yuan recently.
Gulf states (like the UAE) are openly discussing yuan as a fallback if dollar liquidity tightens.
And on top of that, Iran is actively using the Strait of Hormuz as leverage—restricting access and effectively turning it into a geopolitical toll gate .
Trump kicked the hornets nest into our yard with no plan, no ideas and no repercussions for him.
princemousey1 on
“Balama reportedly told American officials that if the UAE runs short of dollars, Abu Dhabi may have little choice except using Chinese yuan or other currencies.”
Which part of this means that they will sell oil in USD?
fideliz on
I’m no expert, but this comes across as a very empty threat. Why would any nation want to trade oil in a manipulated currency?
Evest89 on
This is obviously Obamas and Bidens fault. Damn you democrats /s
😡
watch-nerd on
Meh.
UAE is 4% of global oil production.
Not worth a bailout from the US Treasury.
WeakBlueberry5071 on
Trump’s second term was his revenge against Americans because they didn’t give him 2 consecutive terms like Obama could 😂
He’s out to hurt America, the only people getting rich during his term are him and his family, and his cronies.
Name a single average American that prospered under his 2nd term and bring receipts.
iuuznxr on
They are running out of dollars because they can’t sell oil but they plan to get other currencies from… selling oil. Takes a Redditor to think this is a fool-proof plan.
whwt on
UAE is making noise about using Yuan, closing US military bases on its territory and making defense agreements and/or deals with Ukraine.
They are making a lot of noise that the US really needs to be listening to. I think they are just the first to say anything.
Fitz911 on
“Why is everybody turning away from us?”
Mostest_Importantest on
Why threaten? Was it threatening, or was it just banking decisions?
And, who does it matter to? Even if it’s a threat to America’s empiric powers, so what?
America’s governing apparatus is managed through senility, stupidity, and alcoholism.
commentman10 on
This is the start of end of the dollar. Thanks to Trump but lets blame the lefties of the world. As he apparently never done anything wrong
i_am_voldemort on
ART OF THE DEAL, FOLKS
Far_King_Penguin on
I see things like “doom of the petrodollar” etc etc a lot
I dont know why it’s important oil is bought in dollars and Googling just confused me more
Anyone able to give me a cheeky ELI5? Or maybe ELI15 coz economics can be confusing.
19 Comments
They just asked the USA to bail them out financially.
What stop USA blockage them if they do that?
So making yuan appreciate and their exports uncompetitive in a time where they are relying on exports to offset involution?
So this is basically the UAE saying, hey, we don’t really want to be your ally anymore if you’re gonna keep doing this shit. That’s really the only reason the US invests heavily in the Middle East is the petrol dollar.
This is them just saying, look, we have options.
The US Petrodollar stopped being a thing when shale oil and fracking came into vogue 10-15 years ago. The US doesn’t import as much oil from the Middle East as it used to historically (currently at 1/4 average from 2 decades ago).
Yuan is floated about but it isn’t a strong contender for Gulf oil states. Why? Because China lacks property rights that Western nations (Dollar/Euro) possess. They can sell their oil and transact in Yuan but they want Dollar/Euro holdings and in turn, investments and properties which are protected by laws and legal tradition. But that is the crux of the problem, if the US isn’t buying oil, GCC ability to get Dollars is reduced.
The GCC states have various levels of investments and projects to earn hard currency, Kuwait not as much (they don’t have a major airline like Qatar/Emirates as an example). But the cash infusion from oil trade is immediate and massive so they want the US to import more energy.
Even Taiwan is seeking for closer ties with China with their KMT chairwoman paying a visit to Xi. Crazy times when Taiwan inches closer to its arch-nemesis away from its closest ally
Iran is already selling a large portion of its oil to China in yuan or yuan-linked structures.
There are confirmed cases of third parties settling Iranian oil in yuan recently.
Gulf states (like the UAE) are openly discussing yuan as a fallback if dollar liquidity tightens.
And on top of that, Iran is actively using the Strait of Hormuz as leverage—restricting access and effectively turning it into a geopolitical toll gate .
Trump kicked the hornets nest into our yard with no plan, no ideas and no repercussions for him.
“Balama reportedly told American officials that if the UAE runs short of dollars, Abu Dhabi may have little choice except using Chinese yuan or other currencies.”
Which part of this means that they will sell oil in USD?
I’m no expert, but this comes across as a very empty threat. Why would any nation want to trade oil in a manipulated currency?
This is obviously Obamas and Bidens fault. Damn you democrats /s
😡
Meh.
UAE is 4% of global oil production.
Not worth a bailout from the US Treasury.
Trump’s second term was his revenge against Americans because they didn’t give him 2 consecutive terms like Obama could 😂
He’s out to hurt America, the only people getting rich during his term are him and his family, and his cronies.
Name a single average American that prospered under his 2nd term and bring receipts.
They are running out of dollars because they can’t sell oil but they plan to get other currencies from… selling oil. Takes a Redditor to think this is a fool-proof plan.
UAE is making noise about using Yuan, closing US military bases on its territory and making defense agreements and/or deals with Ukraine.
They are making a lot of noise that the US really needs to be listening to. I think they are just the first to say anything.
“Why is everybody turning away from us?”
Why threaten? Was it threatening, or was it just banking decisions?
And, who does it matter to? Even if it’s a threat to America’s empiric powers, so what?
America’s governing apparatus is managed through senility, stupidity, and alcoholism.
This is the start of end of the dollar. Thanks to Trump but lets blame the lefties of the world. As he apparently never done anything wrong
ART OF THE DEAL, FOLKS
I see things like “doom of the petrodollar” etc etc a lot
I dont know why it’s important oil is bought in dollars and Googling just confused me more
Anyone able to give me a cheeky ELI5? Or maybe ELI15 coz economics can be confusing.