EU isn't a big customer of SA oil. So I won't expect EURO payment to make to the news as RMB.If eu has been buying oil in euro for so long, then why was it such a big deal that rmb payment for oil hitting 20% last year? Clearly, euros have at least that much import demand.
Saudi Arabia is also the largest exporter of crude oil in the world. The main destinations for its crude
petroleum exports are non-EU countries, including China (27.8 % in 2021), Japan (15.9 %), South
Korea (13.5 %), India (11.5 %), and the US (5.64 %). In the EU, which in 2021 accounted for
approximately 7.8 % of Saudi Arabia's exports, the main destinations are the Netherlands (5.7 %),
Spain (2.3 %), France (2.2 %), Italy (1.9 %) and Germany (1.1 %).
Another reason of RMB payment getting more attention is that, total Chinese import amount 27.8%, 20% means that more than 70% of China's import from SA is paid in RMB. It is a significant indication of totally dumping dollar between SA and China. That fast moving trend and determination may worth more attention than the actual payment currency. This trend is part of the core of the intensifying rivalry between China and US. EU as part of US camp wouldn't get much light on EURO payment.
My argument in the privoius post was about SA's obiligation in the agreement which does not forbide SA to sell oil in other currency. It may be more clearer for me to have phrased it as "I guess" or "in theory" instead of "I think" which may be interpreted as "I believe".Why was euro not used more previously?
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