(Illustration by ChatGPT for COGwriter)
RT and the Wall Street Journal and RT reported the following:
Gulf nation warns US it could ditch petrodollar for yuan – WSJ
20 April 2026
The United Arab Emirates has warned the US Treasury that it could be “forced to use Chinese yuan” in oil trade, the Wall Street Journal reported on Sunday.
UAE Central Bank Governor Khaled Mohamed Balama delivered what the newspaper described as an “implicit threat” against the dollar’s dominant position during a meeting with US Treasury Secretary Scott Bessent in Washington last week, the outlet said, citing unnamed US officials.
Balama reportedly explained that Abu Dhabi could require a lifeline to prevent a dollar liquidity crunch if the economic fallout from the US war against Iran continues to rise. …
Arab frustration with US policies has surfaced in public commentary from figures linked to Gulf governments. On Sunday, Abdulkhaleq Abdulla, a former adviser to UAE President Mohammed bin Zayed, called for US military bases in the country to be closed, arguing that they are a burden rather than a strategic asset. He advocated instead for prioritizing the acquisition of advanced US weaponry as an alternative national defense strategy. https://www.rt.com/news/638757-uae-yuan-oil-trade/
U.A.E. Asks U.S. About a Wartime Financial Lifeline
WASHINGTON—The United Arab Emirates has opened talks with the U.S. about obtaining a financial backstop in case the Iran war plunges the oil-rich Persian Gulf state into a deeper crisis, U.S. officials said.
U.A.E. Central Bank Gov. Khaled Mohamed Balama raised the idea of a currency-swap line with Treasury Secretary Scott Bessent and Treasury and Federal Reserve officials in meetings in Washington last week, the officials said. The Emiratis emphasized that they had so far avoided the worst economic effects of the conflict but might still need a financial lifeline, the officials said.
The talks highlighted the U.A.E.’s concern that the war could inflict major damage on its economy and its position as a global financial hub, depleting its foreign reserves and scaring away investors who once saw it as a stable and secure place for their money. The conflict has damaged Emirati oil-and-gas infrastructure and shut off their ability to sell oil using tankers transiting the Strait of Hormuz, depriving it of a key source of dollar revenues.
Emirati officials haven’t made a formal request for a swap line, which would give the U.A.E. central bank inexpensive access to dollars to support its currency or shore up its foreign reserves in case of a liquidity crisis. In talks with the U.S. in recent days, they have portrayed the proposal as preliminary and precautionary, the U.S. officials said.
But they have also argued that it was President Trump’s decision to attack Iran that entangled their country in a destructive conflict whose effects may not be over, some of the officials said. Emirati officials told the U.S. officials that if the U.A.E. runs short of dollars, it may be forced to use Chinese yuan or other countries’ currencies for oil sales and other transactions, some of the officials said.
In that scenario is an implicit threat to the U.S. dollar, which reigns supreme among global currencies partially because of its near-exclusive use in oil transactions. …
The Emirati dirham is pegged to the dollar and backed by foreign-currency reserves of $270 billion, but the war has put it under pressures from capital-flight risks, stock-market volatility and other disruptions, analysts said. 04/19/26 https://www.wsj.com/world/middle-east/u-a-e-asks-u-s-for-a-wartime-financial-lifeline-3f9ea3a0
The idea of the Gulf states moving away from the USA dollar is not new. Saudi Arabia and other oil-exporting states have been looking at other currencies (e.g. US caused BRICS? If Saudi Arabia fully joins, could that kill the petrodollar?).
Yet, one of the unintended consequence of the Iran war is that it is pushing some away from the petrodollar according to reports like the following from last month:
Gulf War Tests the Foundations of the Petrodollar
March 25, 2026
The ongoing war in Iran is forcing Gulf states to question the value of the U.S. security guarantee. Since the U.S. and Israel launched strikes on February 28, it has been the Gulf neighbors that have borne the brunt of retaliatory missiles and drone attacks. Critical energy infrastructure has been damaged, economies disrupted, and confidence shaken in what was long assumed to be an unassailable U.S. protection umbrella.
The Petrodollar Bargain
Beyond the immediate military consequences, the conflict has triggered a potential rethink of the Gulf’s financial, trade, and military ties, particularly those underpinning the petrodollar system and the hundreds of billions of dollars in reserves and sovereign wealth funds that support it. For decades, the Gulf states and Washington have operated on an implicit bargain: U.S. protection in exchange for Gulf oil priced in dollars, and the recycling of those “petrodollars” into U.S. stocks, bonds, arms, and technology. Saudi Arabia, the United Arab Emirates, Qatar, Oman, and Bahrain all peg their currencies to the dollar, requiring large supporting reserves of roughly $800 billion. At the same time, sovereign wealth funds from the Gulf Cooperation Council manage more than six trillion dollars globally, heavily invested in U.S.-linked assets, while Saudi and UAE funds alone hold nearly 250 billion dollars in U.S. Treasury securities. This system has been central to the dollar’s status as the world’s reserve currency and to U.S.-Saudi relations since the 1970s.
Pillars of the Petrodollar Under Strain
The petrodollar rests on three pillars: U.S. demand for oil, oil priced in dollars, and the Gulf’s reliance on U.S. security. Each of these pillars is now under strain. America’s position as a net energy exporter has reduced its reliance on Middle Eastern oil. Dollar pricing of oil was already under pressure before the war, as countries including China, Russia, and Iran experimented with non-dollar energy trade. https://moderndiplomacy.eu/2026/03/25/gulf-war-tests-the-foundations-of-the-petrodollar/
The US dollar has been in the process of losing an important part of its international backing for the past several years (e.g. The End Of The Petrodollar Is The End Of America’s Global Dominance? Saudi Arabia Ends Petrodollar Deal With US? US Dollar is ‘Toxic’?), and the Iran war is another push.
What is the petrodollar?
Essentially, it is the fact that although the US dollar is no longer backed by gold, since most oil is priced in US dollars, that gives the US dollar a backing through a needed commodity. This insures that, internationally, the US dollar will have value. So it is sometimes called a petrodollar.
Here is more about that:
After the collapse of the Bretton Woods gold standard in the early 1970s, the U.S. struck a deal with Saudi Arabia to standardize oil prices in dollar terms. Through this deal, the petrodollar system was born, along with a paradigm shift away from pegged exchanged rates and gold-backed currencies to non-backed, floating rate regimes.
The petrodollar system elevated the U.S. dollar to the world’s reserve currency and through this status, the U.S. is able to enjoy persistent trade deficits, and become a global economic hegemony. The petrodollar system also provides the United States’ financial markets with a source of liquidity and foreign capital inflows through petrodollar “recycling.” However, before the effects of the petrodollars on the U.S. dollar can be examined, a brief history lesson is in order. …
Since the most sought after commodity in the world–oil–is priced in U.S. dollars, the petrodollar helped elevated the greenback as the world’s dominant currency. In fact, according to the Bank for International Settlements (BIS) triennial survey, 87 percent of all foreign exchanges deals initiated in April 2013, involved the USD on one side. With this status, the U.S. dollar was able to enjoy, what some have asserted to be an “exorbitant privilege” of perpetually financing its current account deficit by issuing dollar denominated assets at very low rates of interest, as well as, becoming a global economic hegemony.
For instance, countries like China, who hold vast quantities of U.S. debt have voiced their concerns in the past about the possible dilutive effects to their asset holdings should the dollar depreciate. However, the privileges associated with being able to run persistent current account deficits come at a price. As the reserve currency, the U.S. is obligated to run these deficits to fulfill reserve requirements in an ever in an ever-expanding global economy. If the United States were to stop running these deficits, the resulting shortage of liquidity can pull the world into an economic contraction. However, if the persistent deficits continued ad infinitum, eventually foreign countries will begin to doubt the valuation of the dollar and the greenback may lose its role as the reserve currency; this is known as the Triffin Dilemma. http://www.investopedia.com/articles/forex/072915/how-petrodollars-affect-us-dollar.asp#ixzz4iqqtZ9CU accessed 06/02/17
If enough oil producing nations stop pricing oil in US dollars, the theory is that the US dollar will drop, or even collapse.
What most Americans do not realize is that the largest export from the USA is actually its currency–which is basically debt notes.
Notice also the following:
“The FINAL PHASE Has Started” Dalio’s Warning to Americans
Ray Dalio calls it the Big Cycle. Taylor Kenney calls it what it is: the slow-motion unraveling of the American empire, right on schedule. Debt that can’t be sustained. A currency losing credibility by the quarter. Rival powers building alternatives while Washington prints more paper to defend what’s already slipping.
Stage five of six. The Dutch had it. The English had it. Now it’s our turn.
So what do you hold when the paper becomes worthless? https://www.zerohedge.com/news/2026-04-19/final-phase-has-started-dalios-warning-americans
In early December 2001, ‘normal’ life very suddenly ceased to exist in Argentina— anything that remotely resembled a functional society came to an abrupt end. And that is by no means an exaggeration.
The banking system collapsed. Financial transactions ground to a halt. Desperate people looted supermarkets for food, and then grocery shelves emptied. Energy ran short. Riots broke out in the streets, and police were shooting citizens in the face.
The crisis raged so much that the President of Argentina fled the country by helicopter. …
Even in early 2001, the same year as the crisis, IMF reports flagged Argentina’s soaring debt-to-GDP ratio, citing its “sharp deterioration in the public finances,” and deficits running well above the targets Buenos Aires had agreed to.
Well, the United States just received the same warning from the IMF last week. Even the language in the report is eerily similar.
In its 2026 Article IV consultation on the United States of America, the IMF warned that America’s “persistently high fiscal deficits [and] the continued rise in debt‑GDP ratio” creates a “growing financial stability tail risk” for both the US and the global economy.
They stressed “the pressing need to address the US’s longstanding fiscal imbalances through a frontloaded fiscal adjustment.”
That last part means that Congress must make critical spending cuts NOW. Not later. Time is running out. Argentina got this warning before its collapse. America just got it last week.
(email 4/20/2026 10:27:16 AM Pacific Daylight Time james@schiffsovereign.com)
While the USA dollar still has some time left, here is something from my free online book Lost Tribes and Prophecies: What will happen to Australia, the British Isles, Canada, Europe, New Zealand and the United States of America?:
Furthermore, some suspect that more countries in BRICS+ may destroy the ‘petrodollar’ system that supports the dollar.[i]
The USA dollar will ultimately crash and be worthless. That “pride” of American power will be broken (cf. Leviticus 26:19).
[i] Dourian K. Are the BRICS gearing up to challenge the petrodollar? Middle East Economy, October 10, 2024 …
The Bible warns about silver becoming “dross” (Isaiah 1:22; Ezekiel 22:18-22) and says to reverse it once it happens (Proverbs 25:4a; Isaiah 1:25). But the Anglo-American nations have not done that, their old silver coins are now dross (made/filled with cheaper materials) and their massive debts have made dross out of their fiat currencies (currencies that are not tied to gold or some other hard asset).
Furthermore, the “U.S. is highly vulnerable to loss of confidence by foreign creditors.”[i] U.S. government debt is “extremely vulnerable to foreign attack because of the high percentage of foreign ownership — almost 40% of the market.”[ii]
Interestingly, in the past, one foreign creditor, China, has raised concerns about the U.S. debt that are so serious, that its potential dumping of that debt has been called China’s “nuclear option”[iii] against the U.S.A.—an option that involves no military intervention, but that could greatly harm the U.S.A.
Many have complained about the U.S.A. “weaponizing” its dollar through sanctions, bank restrictions, and other means.[iv] By doing so, the U.S.A. has inadvertently been building up a coalition to push aside the dollar—and this will happen when the timing is considered to be better. European leaders have been working for years to establish a new reserve currency for the world, partially with the intent to remove the U.S. dollar from its position as the world’s primary reserve currency. The fact that Europe would develop its own currency, as well as for that purpose, was predicted by Church of God writers no later than 1971[v] –which is over two decades before the euro was officially agreed to.
Those in Iran and some of the Arab lands, along with nations such as Brazil, China, and India have discussed plans for the removal of the dominance of the U.S.A. in global trade as well. The former (again current) President of Brazil, Luiz Inácio Lula da Silva, even claimed that eliminating the U.S. dollar’s reserve currency status was one of the reasons that the BRICS alliance (Brazil, Russia, India, China, and South Africa) was formed in the first place. [vi] Others have noted that bypassing the USA dollar is still an object of BRICS—and officially BRICS nations “are currently working on setting up a new global reserve currency,”[vii] which may have gold-backing.[viii] The expansion of BRICS (which is in progress) may ultimately even hurt Australian trade as well as “severely weaken primacy of the US Dollar as an international currency.”[ix]
The Bible clearly warns against cheapening the money supply and encourages having money hold its value (Proverbs 25:4 Isaiah 1:25, Ezekiel 22:18-22). Debt is also warned against (Habakkuk 2:6-8). Yet policies enacted under the Obama, Trump, and Biden Administrations, following certain other administrations, have ignored these warnings.
Destruction is coming.[i] Rickards J. Axis of Gold. The Daily Reckoning, December 20, 2016
[ii] Ibid
[iii] Gertz B, China Debt Threat. Washington Times, March 2, 2011
[iv] Jayakumar V. The weaponization of finance threatens the future of the dollar standard. The Hill, March 1, 2022
[v] Hogberg G. Rising World Colossus. Plain Truth magazine, May 1971
[vi] Escobar P. BRICS was created as a tool of attack: Lula. Asia Times, August 28, 2019
[vii] BRICS developing new global reserve currency – Putin. RT, June 22, 2022
[viii] Helms K. Economists Discuss Russia, China Potentially Developing Gold-Backed Currency. BRICS Information Portal, November 11, 2022
[ix] Hunter M. BRICS Is Becoming The Big Kid On The Block: Implications For Australia – Analysis. Eurasia Review, November 1, 2022
As far as the BRICS alliance of nations goes, Brazil, Russia, Saudi Arabia, Iran, and the United Arab Emirates are major oil exporters and China and India are major oil importers. Hence their efforts, combined with Saudi Arabia’s non-exclusive dollar oil sales, look to be factors to help topple the USA dollars reserve currency status. Perhaps, it should also be noted that all of those nations also highly value gold and continue to build their gold reserves, partially because of their desire to not rely on USA dollars.
The USA will have MASSIVE inflation and the economy will never fully recover as creditors will rise up and eliminate the USA per Habakkuk 2:6-8.
Someone said this could happen as early as 2015:
Market Collapse then New World Order in 2015? A long-time financial adviser named Harvey Organ claims that claims that because of insufficient gold in the central banks of USA and UK, that Shanghai would bring about exposing this and that this would lead to a massive, overnight, rise in the price of gold and silver, diminished value of their currencies. He states a market collapse will occur before the end of 2014, that the petroyuan will replace the petrodollar, and that a Chinese led New World Order will be in place for 2015. Is this possible? Where does the leader of the ‘New World Order’ come from? What does the Bible teach? This is a video.
Although I did not believe such a collapse could have happened in 2015 (nor do I believe such for 2026), the reality is that the Bible tells of a time when the US will be taken over (Daniel 11:39) and its massive debts will be a reason that many will be opposed to it (cf. Habakkuk 2:2-8).
The existence of the ‘petrodollar’ seems to have helped the USA be in a position to increase its debt and that will not end well (cf. Habakkuk 2:2-8; Daniel 11:39; see also USA in Prophecy: The Strongest Fortresses).
As far as Saudi Arabia goes, while it considers itself a US ally (and still feels the need for US military protection), one day it will further break its ties with the US (cf. Psalm 83:2-8; see also Is the Future King of the South Rising Up?).
Some items of possibly related interest may include:
The End of US Dollar Dominance Is the USA losing its economic status? What about the petro-gold-yuan? A related video is also available: US Dollar being challenged by Gold-Petro-Yuan.
HABAKKUK Here is a link to the article Commentary on Habakkuk and the End of the United States. God gave Habakkuk a message on living by faith. Did God give a prophecy concerning debt and the destruction of the United States? This article covers the entire Book of Habakkuk. Here is a link to a related sermon: Habakkuk: Faith, USA’s End, & Jesus’ Return.
The Plain Truth About Gold in Prophecy. How Should a Christian View Gold? What do economists and the Bible teach about gold? Gold and silver may drop in value. Inflation/deflation? What do Christians need to know about gold and silver? Two videos of related interest may be: Germany, Gold, and the US Dollar and Silver, Science, and Scripture.
Europa, the Beast, and Revelation Where did Europe get its name? What might Europe have to do with the Book of Revelation? What about “the Beast”? Is an emerging European power “the daughter of Babylon”? What is ahead for Europe? Here is are links to related videos: European history and the Bible, Europe In Prophecy, The End of European Babylon, and Can You Prove that the Beast to Come is European?
USA in Prophecy: The Strongest Fortresses Can you point to scriptures, like Daniel 11:39, that point to the USA in the 21st century? This article does. Two related sermon are available: Identifying the USA and its Destruction in Prophecy and Do these 7 prophesies point to the end of the USA?
Unintended Consequences and Donald Trump’s Presidency: Is Donald Trump Fulfilling Biblical, Islamic, Greco-Roman Catholic, Buddhist, and other America-Related Prophecies? Is Donald Trump going to save the USA or are there going to be many disastrous unintended consequences of his statements and policies? What will happen? This is a free eBook.
Who is the King of the West? Why is there no Final End-Time King of the West in Bible Prophecy? Is the United States the King of the West? Here is a version in the Spanish language: ¿Quién es el Rey del Occidente? ¿Por qué no hay un Rey del Occidente en la profecía del tiempo del fin? A related sermon is also available: The Bible, the USA, and the King of the West.
Could God Have a 6,000 Year Plan? What Year Does the 6,000 Years End? Was a 6000 year time allowed for humans to rule followed by a literal thousand year reign of Christ on Earth taught by the early Christians? Does God have 7,000 year plan? What year may the six thousand years of human rule end? When will Jesus return? 2033 or 2035 or? There is also a video titled: When Does the 6000 Years End? 2031? 2035? Here is a link to the article in Spanish: ¿Tiene Dios un plan de 6,000 años?
Lost Tribes and Prophecies: What will happen to Australia, the British Isles, Canada, Europe, New Zealand and the United States of America? Where did those people come from? Can you totally rely on DNA? What about other peoples? Do you really know what will happen to Europe and the English-speaking peoples? What about Africa, Asia, South America, and the Islands? This free online book provides scriptural, scientific, historical references, and commentary to address those matters. Here are links to related sermons: Lost tribes, the Bible, and DNA; Lost tribes, prophecies, and identifications; 11 Tribes, 144,000, and Multitudes; Israel, Jeremiah, Tea Tephi, and British Royalty; Gentile European Beast; Royal Succession, Samaria, and Prophecies; Asia, Islands, Latin America, Africa, and Armageddon; When Will the End of the Age Come?; Rise of the Prophesied King of the North; Christian Persecution from the Beast; WWIII and the Coming New World Order; and Woes, WWIV, and the Good News of the Kingdom of God.
The Final Phase of the Work What is the final phase of the work? Who will lead it? Do you have the courage to support it? Here are two related YouTube videos titled Final Phase of the Work: Need and Background and The Final Phase of the Work. The written article has been translated into Spanish La Fase Final de la Obra. And here is a link to a related Spanish language sermon: La obra corta y el Hambre de la Palabra de Dios.