Saudi Arabia and China to Commence 50 Billion Yuan Swap Line

Estimated read time 1 min read

China and Saudi Arabia have strengthened their relationship by signing a $7 billion local currency swap agreement, as more Middle Eastern nations move their trade away from the dollar. The three-year swap agreement, which can be extended by mutual agreement, will contribute to enhancing financial cooperation, increasing the usage of local currencies, and advancing investment and commerce between Beijing and Riyadh. In 2022, China imported $65 billion worth of Saudi crude, or over 83% of all the kingdom’s exports to the massive Asian nation.

China, Saudi Arabia’s largest trading partner, has been encouraging the use of yuan in trade with significant exporters of commodities and oil. The agreement is the most recent example of the growing business connections between Riyadh and Beijing, which have seen Saudi Aramco invest billions of dollars in China’s petrochemicals industry and the Saudi government trying to attract Chinese technology firms.

DISCLOSURE: All our E.F team members come from an investment background. Apart from writing articles about companies, investments and financial instruments, we also invest in most of them. Please read our terms of use for more details.

E.F Team

Our team at Eastern Finance is made up of young and knowledgeable professionals who are here to provide you with business news from an eastern perspective.

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