There's been some rumors that Saudi wants to settle their oil trades in Yuan (China's currency) replacing the Dollar. If this happens, the Dollar's global reserve currency status will be in serious question. And one more thing, Saudi and Iran could join the BRICS (Brazil, Russia, India, China). If this is to happen, it will become one of the largest oil producing alliance. This is like half of the global population, where US is not a part of it.
How much of an impact this could have on the global economy and how bad or good is it?
The potential shift in the global oil trade towards using the yuan instead of the dollar and the possibility of Saudi and Iran joining BRICS would have significant implications for the global economy.
If the shift occurs, it could diminish the demand for the US dollar as a global reserve currency, which could weaken its value and reduce its dominance in global markets. Additionally, the formation of a large oil-producing alliance that excludes the US could potentially shift the balance of power in the global economy and have significant geopolitical implications.
However, it is important to note that these are still rumors at this point, and any such shifts would likely take time to occur and have complex consequences that are difficult to predict. The impact on the global economy would depend on a variety of factors, including how quickly the shift occurs, how it affects other markets and currencies, and how major players in the global economy respond to these changes.