When I heard OPEC members Iran and Venezuela voiced out their demand to stop trade oil in US Dollar, I was thinking, what is the best currency to trade crude oil? When you complaint about something, you’ve got to provide solution to it. Well, I got an idea and I am willing to share with you.
So, during the meeting, when those two countries complaint, Saudi Arabia, the Big Brother and the closest allies to the US, totally rejected the idea. (I couldn’t understand why Saudi Arabia straight away rejected it, other than this country is the US political closest ally). Well, if my country is one of the biggest producers, I would also propose to change the oil trade currency. Why not? The dollar currency is depreciating in value!
This is, actually, just a simple supply-demand relationship. It takes two to tango right? Therefore, when one party proposes, the other party got to agree. When Iran and Venezuela proposed, other countries got to agree. What happened was Saudi Arabia immediately and totally disagrees. Acting as proxy to the US and protecting the US. What for?
So, apart from the US, other ‘consumer’ countries those demanding significantly huge volumes of crude oil are Japan, China, India and the EU. Therefore, definitely other currencies those suitable for oil trading are Yen, Yuan, Rupees and Euro. All four currencies can be use to trade oil. Rules can be changed. If Japan, China, India and the EU agreed to trade in their respective currency, deal done. For other countries, apart from those four big nations, they can choose to trade in either the producer’s currency or the importer’s currency. Or, there is another solution. Any countries that closest (geographically) to one of the four nations, trade in currency nearer to them. How about that? Would you, the leaders consider this idea? Why not?
So, during the meeting, when those two countries complaint, Saudi Arabia, the Big Brother and the closest allies to the US, totally rejected the idea. (I couldn’t understand why Saudi Arabia straight away rejected it, other than this country is the US political closest ally). Well, if my country is one of the biggest producers, I would also propose to change the oil trade currency. Why not? The dollar currency is depreciating in value!
This is, actually, just a simple supply-demand relationship. It takes two to tango right? Therefore, when one party proposes, the other party got to agree. When Iran and Venezuela proposed, other countries got to agree. What happened was Saudi Arabia immediately and totally disagrees. Acting as proxy to the US and protecting the US. What for?
So, apart from the US, other ‘consumer’ countries those demanding significantly huge volumes of crude oil are Japan, China, India and the EU. Therefore, definitely other currencies those suitable for oil trading are Yen, Yuan, Rupees and Euro. All four currencies can be use to trade oil. Rules can be changed. If Japan, China, India and the EU agreed to trade in their respective currency, deal done. For other countries, apart from those four big nations, they can choose to trade in either the producer’s currency or the importer’s currency. Or, there is another solution. Any countries that closest (geographically) to one of the four nations, trade in currency nearer to them. How about that? Would you, the leaders consider this idea? Why not?
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