After Pausing BRICS, Saudi Arabia Starts Issuing US Dollar Bonds

Reports indicate a significant shift in Saudi Arabia's economic strategy. Following speculation about joining the BRICS alliance, and amidst signals suggesting a pause in that decision, the Kingdom is now focusing on strengthening its ties with the US dollar. This move comes as Saudi Arabia has held off formally joining the BRICS bloc of nations despite attending a meeting in Brazil last week, two sources said, signaling a potential recalibration of its international economic partnerships.

Saudi Arabia Issue Dollar Denominated Bonds

The most concrete evidence of this shift is the initiation of a new bond issuance program denominated in US dollars. This decision underlines Saudi Arabia's continued reliance on and confidence in the American currency and financial markets. The issuance is expected to attract significant interest from international investors, further solidifying the Kingdom's financial standing.

Finessing the BRICS Decision

The reasons behind Saudi Arabia's apparent hesitation regarding BRICS membership are complex. While the nation attended meetings and expressed initial interest, geopolitical considerations and the desire to maintain strong economic ties with the United States are likely key factors. Some sources suggest that finessing an issue that could upset its existing relationships is a priority.

BRICS No Thank You, For Now?

Whether this is a temporary pause or a more definitive decision remains to be seen. However, the current actions speak volumes. The bond issuance, in particular, is a clear indication of Saudi Arabia's current priorities and its commitment to the US dollar. Ultimately, this signals that Saudi Arabia may be subtly sending a message that it will stick with US dollar, that is to say, Saudi Arabia issue dollar denominated bonds and tells the BRICS no thank you. The situation is dynamic, and further developments are expected in the coming months.