Business

Saudi-US tensions could hit
the dollar badly: PEW

Written by The Frontier Post

ISLAMABAD (INP): The Pakistan Economy Watch (PEW) on Friday said tensions are rising between Saudi Arabia and the United States, which could cause a sharp fall in the value of the US dollar.
Saudi Arabia is tired of increasing US interference in its internal affairs, overlooking its concerns and hitting its interests, it said. Now Saudi Arabia is improving political, economic and defence relations with other countries, including Russia and China resulting in sleepless nights in Washington, said Dr. Murtaza Mughal, President PEW. He said that Saudi Crown Prince Mohammed bin Salman who is the de facto ruler of the kingdom is not ready to talk to the US President nor is he willing to increase oil production to reduce the prices in the international market.
Dr. Murtaza Mughal said that now Saudi Arabia is considering selling oil to China in Yuan instead of the dollar, which would strengthen the Chinese currency and economy and pose a serious threat to the United States, its currency and the global dominance.
He said that most of the oil is traded in US dollars, which is the main reason for the importance of this currency and the strength of the United States and the decline of dollar will damage the economy of the United States.
In the past, the countries that tried to sell oil in currencies other than the dollar, including Iraq and Libya, have been made an example but now such action against Saudi Arabia is difficult because the United States and Europe are entangled with Russia.
The United States is trying to get oil from Iran and Venezuela, but oil from both countries cannot be a substitute for Russian oil on the global market, he observed.
Only Saudi Arabia and the United Arab Emirates have the ability to control oil prices in the international market, but the rulers of these two countries are not ready to listen to the US President which is sounding alarm bells in the White House.
There is a general opinion in Saudi Arabia and the UAE that when the United States did not help them against the Iran-backed Houthi militia, why should they help the United States against Russia.

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