China and the dedollarisation of the Palestinian cause
The West will launch the most expansive sanctions against Palestinians and their supporters. If China cannot help through its financial system, it will undermine its efforts to help Palestine.
Did China just pay for Egypt to open Rafah crossing and fully implement UN resolution in that regard? The evidence suggests so!
- China signed a local currency swap deal with Saudi two days ago for about the local equivalences of 7 billion USD. This happened whilst Saudi delegation was in Beijing to discuss implementing a ceasefire in Gaza. Saudi does not per se need the easy money directly, but it can use it to finance others.
- In the same day, Egypt announced it will be signing a local currency swap deal with the UAE and Saudi to trade in Riyals, Dirhams, and Egyptian pounds. My view is Egypt and gulf countries are working collectively with China to show a united financial front to face the western imminent financial punishment on Egypt for breaking the siege on Gaza.
- The IMF has been teasing Egypt about its next loan package worth about 3 billion. The West is using the money to prevent Egypt from taking a stance on the war and opening a humanitarian corridor through Rafah. Hence, China's money and financial system is needed to overcome western pressure.
- The hostage deal was also approved at the same time. This suggests realisation by Isr and the US that they are running out of time and soon they will lose leverage which enabled them to ignore global pleas for ending the fighting and starting a political process.
And this is from me: President Xi can contribute to the liberation of Palestine by enabling de-dollarising Palestinian wealth. Western sanctions and financial leverage have undermined political leaders in Palestine and have undercut the viability of the Palestinian political project. China can single handedly fix this problem by guaranteeing all Palestinian bank deposits in yuan. This is not a luxury and is needed if China is serious about helping Palestine. The West is in the process of launching the most expansive level of sanctions against Palestinians and their supporters as individuals, countries, and organisations. If China cannot help through its financial system, it will undermine its efforts to help Palestine.