According to Ben Armstrong, Saudi Arabia has become a focal point in the global financial arena. The CoinSpeech team collected the most important takeaways from his recent appearance. You can find Ben Armstrong’s new video below.
Saudi Arabia’s Strategic Position
Saudi Arabia has been caught in a tug-of-war between BRICS and the IMF/United States. “They are for the moment kind of playing both sides,” Armstrong noted. On the surface, Saudi Arabia appears to be straddling the fence, not fully committing to BRICS while still engaging in initiatives that suggest alignment with BRICS priorities.
The Belt and Road Initiative
One of the key reasons for following Saudi Arabia’s movements, according to Armstrong, was the “reclassification of gold as a tier one asset in 2019.” This reclassification piqued interest about global financial trends. Saudi Arabia’s involvement in China’s Belt and Road Initiative further solidified its strategic positioning. Armstrong labeled it “the largest infrastructure project in human history.”
Engagement with BRICS and Other Alliances
Armstrong also delved into Saudi Arabia’s multiple applications to organizations closely linked to BRICS. “They have applied to the BRICS new development bank and the Shanghai Cooperation Organization,” he said. This entry into global economic and military organizations reveals Saudi Arabia’s intent to diversify its alliances.
A Shift in Energy Transactions
“They are already selling their oil to China as an example for Yuan,” Armstrong pointed out. This shift away from the U.S dollar to other currencies like the Yuan, which is “immediately convertible into gold on the Shanghai Gold Exchange,” is a substantial move. Armstrong highlighted this as a sign of Saudi Arabia choosing sides.
The Decline of the U.S. Dollar
Armstrong discussed how the “dollar hegemony has been a function of the protection of the Saudi Kingdom since 1974.” However, this long-standing relationship appears to be fraying. With Saudi Arabia and other BRICS nations dumping U.S. treasuries in favor of commodities like gold and oil, Armstrong believes that “Saudi Arabia is certainly hedging and indicating what side they are truly on.”