Saudi Arabia resort to obtain gold reserve aiming alternatives to the total reliance on the US dollar to support the local currency and the national economy
Saudi Arabia has adopted a new economic policy aimed at acquiring a large gold reserve, according to a report issued by the Money Metals platform, which specializes in gold trading.
The report indicated that Saudi Arabia has purchased 160 tons of gold undeclared from Switzerland since 2022.
The report explained that Saudi Arabia relies on global gold prices in its purchases, increasing its purchases when prices fall and reducing them when they rise, reflecting a strategy similar to that followed by other Asian countries with the aim of reducing the impact of gold price fluctuations on its economy in the long term.
The report also noted that part of the gold imported from Switzerland is stored at the Saudi Central Bank, known as the Saudi Arabian Monetary Agency.
The report stressed that this trend could pave the way for the emergence of a new economic system based on gold as an alternative to the system known as the petrodollar, which was established in the 1970s to make oil a major source of the US dollar.
The report also indicated that these policies are in line with the policies of the BRICS group, which aims to gradually abandon the dollar until it is completely eliminated over time, and restore gold as a global economic standard.
It’s noteworthy that Saudi Arabia, along with other countries such as China, began converting their dollar reserves into gold reserves since the beginning of the Ukrainian crisis and the freezing of Russian assets by the West, which prompted these countries to search for an alternative to the dollar away from Western control.
