De-dollarization is underway as more countries seek alternatives to U.S. dollar
Saudi Arabia and Iran's foreign ministers met in Beijing on Thursday for their first formal gathering since China brokered a deal to restore relations between the regional powers last month.
Saudi Arabia, Iran and other countries have also taken measures to accelerate the process of "de-dollarization" such as selling U.S.bonds, relinquishing the use of the U.S.dollar as currency for settlement, and issuing digital currencies.
Other countries have also rolled out a slew of alternatives to the U.S. dollar.
After an oil price cap was imposed on Russia in December, Indian buyers have paid for Russian oil in non-dollar currencies, including the UAE dirham and the Russian ruble, multiple oil trading and banking sources told Reuters.
Argentina and Brazil began talks in January to create a common currency, as part of a coordinated bid to reduce reliance on the U.S. dollar. Discussions on how the new currency, which Brazil suggests calling the "sur" (south), could boost regional trade and reduce reliance on the U.S. dollar were planned, Financial Times reported, citing officials.
"The U.S. dollar reserve currency system is coming to an end, and we are moving towards a multi-polar reserve system," said Bobby Molavi, managing director at Goldman Sachs.