Is Saudi Arabia approving Chinese yuan for oil settlement to Europe, East Asia, Africa and South America?

Direct Answer

Saudi Arabia has been in discussions with China about yuan-denominated oil trade since at least 2016, with active talks reported in March 2022, but no formal approval or implementation of yuan settlement for oil exports to Europe, East Asia, Africa, and South America has been confirmed. The post conflates ongoing negotiations with an actual approval decision and overstates the scope of any potential agreement, which would primarily involve China, not multiple continents.

Why People Get This Wrong

People believe this claim due to a kernel of truth in ongoing discussions and limited RMB settlements between Saudi Arabia and China for oil trade, amplified by high-profile events like President Xi's 2022 visit to Riyadh where he pushed for RMB usage[1][2]. Sensational media reports, such as those in The Wall Street Journal about talks to price some Saudi oil in yuan, create the impression of a finalized, broad approval extending to multiple regions[2]. This overlooks the reality that progress remains limited to China, with no evidence of approvals for Europe, East Asia (beyond China), Africa, or South America, and significant economic barriers persist[1][2].

Sources & Methodology

• 01
  Saudi Arabia's Oil Exports and the Yuan - China-US Focus

  https://www.chinausfocus.com/finance-economy/saudi-arabias-oil-exports-and-the-yuan

• 02
  Saudi-China Ties and Renminbi-Based Oil Trade - S&P Global

  https://www.spglobal.com/content/dam/spglobal/global-assets/en/special-reports/Corp_0821_Saudi-ChinaTiesandRenminbi-basedoiltrade.pdf

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