In the latest sign the dollar-centric global financial system is under immense strain, China and Saudi Arabia have “accelerated” ongoing talks to price oil contracts in yuan instead of greenbacks, according to a Wall Street Journal report.

The dollar’s ongoing steady decline as a global trading and reserve instrument has significant implications for the U.S. economy, and could make neutral or non-state monetary networks more useful to a wider range of actors.

China is trying very hard to maintain stability in its yuan but it is far from a reserve currency, let alone a transparent one. If Saudi Arabia were to go through with this, it would mark a significant step away from historical allegiances and the U.S. dollar/SWIFT system would be done. Commodities as we know it, will cease to exist the way we have known for the past 50 years, with correlations breaking down as the dollar will cease to be its driving force. Perhaps a slow move to a basket of select currencies like euro, yen, yuan, and others would be a more suitable alternative to trade oil and commodities. But make no mistake, the wheels of change are already set in motion. Covid and Ukraine have just brought that time line closer to the dollar’s ultimate demise.