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Saudi-China Currency Swap Deal Strengthens Bilateral Trade Exchange

The agreement is evidence of the strength of the Saudi economy and its importance on the global economic map (Reuters)
The agreement is evidence of the strength of the Saudi economy and its importance on the global economic map (Reuters)
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Saudi-China Currency Swap Deal Strengthens Bilateral Trade Exchange

The agreement is evidence of the strength of the Saudi economy and its importance on the global economic map (Reuters)
The agreement is evidence of the strength of the Saudi economy and its importance on the global economic map (Reuters)

The Saudi Central Bank and its Chinese counterpart, the People’s Bank of China, have announced the signing of a currency swap agreement totaling 50 billion yuan ($6.93 billion or SAR 26 billion).
The agreement, valid for an initial three-year period and subject to extension by mutual consent, marks a milestone in the financial cooperation between Riyadh and Beijing.
This collaboration aims to expand the use of local currencies, bolster trade and investment, and strengthen bilateral relations in areas of mutual interest.
According to a statement by the Saudi Central Bank, the agreement signifies a broader effort to enhance future commodity exchanges between the two nations, thereby increasing the volume of trade and commercial expansion.
Financial analysts view this agreement as a means to fortify the exchange of goods between the two countries, potentially mitigating the economic repercussions felt globally and safeguarding the economies of both nations.
Dr. Mohammed bin Dleim Al-Qahtani, an economics professor at King Faisal University, emphasized the significance of the agreement in mitigating the impact of global economic uncertainties on the economies of both Saudi Arabia and China.
He noted that it will play a role in reducing the effects of globally high interest rates, inflation, and potential risks stemming from the increasing US debt, which has surpassed $30 trillion.
Al-Qahtani pointed out that the agreement is indicative of the strength and resilience of the Saudi economy, highlighting its importance on the global economic map.
According to Al-Qahtani, acceptance by the second-largest economy in the world, China, of the Saudi riyal and its inclusion in the currencies held by the People’s Bank of China, coupled with the substantial amount involved, equivalent to approximately 7% of the Saudi GDP, reinforces confidence in the riyal and the robustness of the Saudi economy.
Moreover, Al-Qahtani anticipated that the agreement would enhance trade facilitation, increase the volume of commodity exchange between the two nations, and facilitate money transfers.

 

 

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FAO Aims for Key Outcomes at COP16 in Saudi Arabia

Preparations in the Saudi capital ahead of hosting the COP16 conference on combating desertification (from the “COP16” page on the X platform)
Preparations in the Saudi capital ahead of hosting the COP16 conference on combating desertification (from the “COP16” page on the X platform)
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FAO Aims for Key Outcomes at COP16 in Saudi Arabia

Preparations in the Saudi capital ahead of hosting the COP16 conference on combating desertification (from the “COP16” page on the X platform)
Preparations in the Saudi capital ahead of hosting the COP16 conference on combating desertification (from the “COP16” page on the X platform)

Dr. Abdul Hakim Elwaer, Assistant Director-General of the Food and Agriculture Organization (FAO), stated that the organization will take an active role at COP16, the UN conference on combating desertification, scheduled to take place in Saudi Arabia in early December.

In remarks to Asharq Al-Awsat, he expressed confidence that the conference—the first of its kind in the Middle East—would produce significant outcomes.

Elwaer’s comments came during a roundtable organized by FAO’s regional office in Cairo, attended by a select group of media representatives. The session focused on FAO’s participation in the upcoming conference and the importance of the Rio Trio —the integrated framework of the three major UN conventions addressing climate change, biodiversity conservation, and desertification.

Fida Haddad, FAO’s Program Officer for Land Rehabilitation and Climate Change, highlighted the interconnectedness of the three conventions and noted that COP16 would place a strong emphasis on land and water rehabilitation and their sustainable management.

Haddad pointed out that approximately 90% of the Middle East is affected by arid conditions. Despite this, local communities and Arab governments have made notable progress in addressing desertification and drought. She also announced that, for the first time, FAO has successfully placed food systems on the COP16 agenda, enabling discussions on how land rehabilitation can enhance food supply chains and systems.

Elwaer underscored FAO’s central role in achieving the second Sustainable Development Goal (SDG): eradicating hunger. He emphasized that FAO actively engages in the UN conventions on climate change, biodiversity, and desertification, which collectively contribute to this mission.

FAO’s focus, according to Elwaer, is on transforming food and agricultural systems to become more inclusive, efficient, and sustainable, aiming for better production, nutrition, and livelihoods. He highlighted the organization’s success in integrating these priorities into the agendas of the three conventions and collaborating with host countries on joint initiatives.

He further noted that Saudi Arabia’s hosting of COP16 is particularly significant for the region, which faces pressing challenges such as water scarcity, desertification, and food insecurity. The conference presents an opportunity for Middle Eastern nations to highlight these issues, explore solutions, and ensure their inclusion in global environmental discussions, not only at this event but in future COP sessions, he underlined.

Elwaer emphasized the growing global attention on desertification, as it is now impacting regions previously unaffected, such as southern Europe and parts of Latin America. These areas are witnessing alarming declines in arable land and forests, prompting them to seek lessons from the Arab world, which has developed resilience strategies to combat desertification over centuries.

FAO will have a strong presence at COP16, with two dedicated pavilions—one in the Blue Zone for official delegations and another in the Green Zone to engage civil society and conference participants, he said.

He added that in collaboration with Saudi Arabia and the UN, FAO will lead coordination on Food Day and Governance Day, scheduled for December 5 and 6, respectively. The organization will also participate in other specialized sessions throughout the conference.