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Home Columns Diplomatic Speak

Petroyuan, BRICS and a Shifting World Order Amid $38.85 Trillion U.S. Debt: What It Means for Guyana

Admin by Admin
March 21, 2026
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PETROYUAN

A gentle THREAT of GCC countries selling oil and gas in PETROYUAN could potentially INFLUENCE  Trump’s decision on a ceasefire, but it’s a complex situation.

READ ALSO

DUBAI’S IMAGE as a safe, tax-free haven is ROCKED by BLASTS from Iranian airstrikes and SWOT Analysis.”

Ramadan Mubarak; MASJID versus MOSQUE; 3 Holiest MASJIDS in ISLAM; Wearing a TIE in the GULF & Middle East is considered INAPPROPRIATE; and NEW ZEALAND “GOLDEN VISA” Programme.  

IRAN has  threatened to block oil shipments through the Strait of Hormuz, a critical waterway for global oil trade, if the US and Israel continue their attacks.

GCC countries, such as Saudi Arabia and the UAE, are REVIEWING their SOVEREIGN WEALTH INVESTMENTS to mitigate the economic impact of the war. They might consider alternative currencies like the  PETROYUAN to reduce their dependence on the US dollar.

PETROYUAN is where OIL and GAS is traded in Chinese YUAN  (RMB) instead of US dollars. It is  part of China’s effort to INTRRNATIONALIZE the YUAN and REDUCE RELIANCE on the  US DOLLAR  in GLOBAL TRADE. IF,  GCC countries start selling OIL and GAS  in PETROYUAN it WILL SHIFT TRADE DYNAMICS and impact GLOBAL currencies.

PETROYUAN  could enhance China’s energy security by allowing it to trade oil and gas directly in yuan, reducing reliance on US dollars and mitigating risks associated with US sanctions or currency fluctuations. China could also increase its influence in global oil markets.

PETROYUAN could ERODE  the US dollar’s DOMINANCE in GLOBAL oil and gas trade, potentially reducing demand for dollars and impacting the US’s ability to influence global financial systems.

Petroyuan  might lead countries to diversify their foreign exchange reserves, potentially holding more yuan to facilitate trade in PETROYUAN. This could REDUCE RELIANCE   on US DOLLARS  and impact global currency dynamics, but the extent of this shift depends on numerous factors, including China’s economic influence and global trade patterns.

IF  and WHEN MORE COUNTRIES trade in PETROYUAN , the US could face:

Reduced DEMAND for US dollars: Lower demand might weaken the dollar’s value.

Less INFLUENCE over GLOBAL FINANCE : Petroyuan could reduce US sway over international transactions.

USA Higher borrowing costs ON USD $38.85 TRILLION DEBT: if investors hold fewer dollars.

BRICS with PETROYUAN

The BRICS bloc (Brazil, Russia, India, China, and South Africa) is promoting the use of the PETROYUAN, a system where oil is traded in Chinese yuan instead of US dollars. This move aims to reduce dependence on the US dollar and challenge its dominance in global energy markets.

The BRICS energy alliance has launched yuan-denominated oil contracts, allowing countries like Russia, Iran, and Venezuela to bypass US sanctions and dollar-based payment systems. Countries like Saudi Arabia and the UAE are also exploring yuan transactions, particularly with China, the world’s largest oil importer. ⁴ ⁵

The use of PETROYUAN is part of a broader de-dollarization trend, with countries seeking to reduce their reliance on the US dollar. The BRICS nations have expanded their currency swap agreements and are promoting local currency transactions, including the yuan, rupee, and ruble.

The PETROYUAN’S GROWTH could LEAD TO:

 Increased yuan demand and strengthened currency.

Reduced US dollar dominance in global oil trade

Potential fragmentation of international oil pricing

Higher transaction costs and market volatility

However, the PETROYUAN’S success depends on China’s ability to liberalize its capital markets and increase foreign investor confidence.

https://russiaspivottoasia.com/brics-energy-alliance-launches-petro-yuan-contracts-to-minimise-us-dollar-usage/

https://www.financemiddleeast.com/energy/petrodollar-to-petro-yuan-exploring-the-future-of-oil-trade-as-brics-expands/

https://www.financemiddleeast.com/energy/petrodollar-to-petro-yuan-exploring-the-future-of-oil-trade-as-brics-expands/

https://moderndiplomacy.eu/2025/02/26/the-rise-of-the-petroyuan-is-the-us-dollar-losing-its-energy-monopoly/#:~:text=Why%20is%20the%20Petroyuan%20gaining,the%20transition%20to%20alternative%20currencies

https://www.reddit.com/r/economy/comments/1o133mm/indian_refiners_asked_to_pay_for_russian_oil_with/

IRAN to use Chinese YUAN

“ IRAN may allow a RESTRICTED NUMBER of OIL TANKERS to pass through the Strait of HORMUZ if shipments are TRADED in CHINESE YUAN , a senior Iranian official TOLD CNN, according to a report Friday.( March 13, 2026.) “

The official said the potential move is part of Tehran’s plan to MANAGE the flow of OIL TANKERS  through the strategic waterway.

Global OIL  is PREDONINANTLY TRADE in U.S. dollars, EXCEPT for sanctioned Russian oil, which is priced in RUBLES or the YUAN, said CNN, adding that China has SOUGHT FOR YEARS to expand the USE OF YUAN  in OIL transactions, BUT  the US DOLLAR remains the World’s PRIMARY RESERVE CURRENCY.’

https://www.dailysabah.com/business/economy/iran-may-permit-oil-tankers-to-pass-hormuz-if-trade-uses-yuan-report/amp

 

USA’s NATIONAL DEBT at $38.85 TRILLION

The USA’s national debt currently stands at approximately $38.85 TRILLION.

COUNTRIES FINANCING  USA debt, the TOP FOREIGN HOLDERS of US TREASURY SECURITIES Treasury are:

CHINA: around $1.1 trillion (though holdings have declined)

JAPAN: roughly $1 trillion

 Other significant holders include the UK, Luxembourg, and oil-exporting countries like Saudi Arabia, Kuwait, Qatar, and the UAE

https://usafacts.org/articles/which-countries-own-the-most-us-debt/

  1. How does the US national debt impact the economy and interest rates?

The US national debt can impact the economy and interest rates in several ways. A high debt level can lead to increased interest rates, reduced investor confidence, and decreased economic growth. The Congressional Budget Office (CBO) estimates that interest payments on the national debt will reach $13.8 trillion over the next decade. Rising debt levels can also lead to higher interest rates, with a 1% increase in the debt-to-GDP ratio potentially increasing long-term interest rates by 3-4 basis points.

  1. What are the implications of foreign countries holding significant US debt?

FOREIGN  countries holding significant US debt can have both positive and negative implications. On the one hand, foreign investment can help finance US government spending and support economic growth. On the other hand, it can also give foreign governments leverage over US economic policy and increase the risk of a sudden withdrawal of funds, which could destabilize the US economy. Foreign holders of US debt, such as China and Japan, have reduced their holdings in recent years, which could impact US interest rates.

  1. How does the US plan to address its growing national debt?

The US government has not outlined a clear plan to address its growing national debt. However, some potential strategies include reducing government spending, increasing taxes, or implementing policies to stimulate economic growth. The CBO has projected that the national debt will continue to rise, reaching 156% of GDP by 2055, highlighting the need for policymakers to address this issue.

https://epicforamerica.org/federal-budget/the-impacts-of-interest-rates-on-the-national-debt-and-the-economy/

https://www.deloitte.com/us/en/insights/topics/economy/spotlight/us-national-debt-fiscal-effects.html

https://www.pgpf.org/article/the-federal-government-has-borrowed-trillions-but-who-owns-all-that-debt/

We moved from Unipolar to Multipolar to NOW a TRIPOLAR World.

 We are  seeing a SHIFT  in GLOBAL POWER DYNAMICS

UNIPOLAR  (post-Cold War): USA dominance, with minimal competition.

 MULTIPOLOAR (emerging): Rise of multiple centers (e.g., EU, China, India), challenging USA hegemony.

 TRIPOLAR  (current trend): THREE  main NATIONS:

– USA (traditional power)

    – CHINA (rising economic and military influence)

–  RUSSIA ( traditional power)

This TRIPOLAR WORLD  reflects a more Complex, Decentralized landscape, with Shifting Alliances and COMPETING  interests

What implications does a tripolar world have for global governance and security?


A TRIPOLAR WORLD with the USA, China, Russia, could lead to increased competition and shifting alliances. This might impact global governance, as countries navigate complex relationships and prioritize their interests. The risk of conflict may rise, particularly if the three poles have diverging goals.

 How might the USA , China, and Russia navigate this new landscape?

The USA, China, and Russia, will likely engage in DIPLOMATIC efforts to maintain stability and protect their interests. They may form alliances, negotiate trade agreements, and participate in international institutions to shape global norms. China’s grand strategy aims to erode USA hegemony, while the UAS seeks to maintain its influence.

What ROLE will EMERGING POWERS  play in shaping this TRIPOLAR World?

Emerging powers like Turkey, India, Brazil, and Indonesia may play crucial roles in shaping the tripolar world. They can leverage their growing economic and military influence to negotiate better terms and assert their interests. Middle powers may also seek strategic autonomy, balancing their relationships with the USA, China, Russia,  and other major players.

How will the tripolar world impact global economic governance and trade agreements?

A tripolar world, with the US, China, Russia, could lead to increased competition and shifting alliances, impacting global economic governance and trade agreements. The USA might prioritize bilateral deals, while China advances its Belt and Road Initiative and the EU pursues deeper ties with India and other partners. ¹

How might the US, China, and Russia engage ?

The USA, China, and Russia will likely engage in Diplomatic efforts to maintain stability and protect their interests. China will continue to assert its influence through economic expansion and strategic partnerships, while the USA may focus on rebalancing its economic and security strategies. Russia might navigate this landscape by strengthening multilateral rules and cooperation with other partners.

What role will EMERGING powers play in shaping this TRIPOLAR  World?

Emerging powers like Turkey,  India, Brazil, and Indonesia may play crucial roles in shaping the tripolar world. They can leverage their growing economic and military influence to negotiate better terms and assert their interests. Middle powers might also seek strategic autonomy, balancing their relationships with the USA, China, Russia, and other major nations.

https://globalaffairs.org/commentary/analysis/what-eu-india-trade-deal-means-middle-power-networks

How will the TRIPOLAR  world affect global security and CONFLICT  resolution?

A tripolar world, with the US, China, Russia, could lead to increased competition and shifting alliances, impacting global security and conflict resolution. The risk of conflict may rise, particularly if the three poles have diverging goals. China has called for an immediate stop to military operations, preventing further escalation of tensions, and resuming dialogue and negotiations to uphold peace and stability in the Middle East.

What implications will the rise of emerging powers have on GLOBAL  governance?

Emerging powers like Turkey, India, Brazil, and Indonesia may play crucial roles in shaping global governance. They can leverage their growing economic and military influence to negotiate better terms and assert their interests. Middle powers might also seek strategic autonomy, balancing their relationships with the USA, China, and Russia.

How might the USA-CHINA rivalry impact the GLOBAL ECONOMY and TRADE?

The USA-China RIVALRY could lead to increased TRADE tensions, TARIFFS, and competition for influence in global trade agreements. China’s Belt and Road Initiative and the USA’s “America First” approach may clash, potentially fragmenting global trade. However, both countries have expressed interest in stabilizing ties and promoting cooperation.

https://www.reuters.com/world/china/china-says-us-talks-vital-trump-targets-beijings-key-partners-2026-03-08/

https://eastasiaforum.org/2025/12/17/us-china-g2-undermines-multipolarity/

https://www.oxjournal.org/global-trade-governance-and-the-us-china-strategic-rivalry/

5 PROPAGANDA STYLES

  1.   Say nothing. Wait for the NEWS CYCLE to move on.
  2.   Attack the Source. Never the substance.
  3.   ITEM goes International, TO HURT, then a PROCESS is ANNOUNCED
  4.   CLAIM POLITICALLY MOTIVATED ITEMS
  5.   OUTLAST THE MEDIA
Amb. Dr Shamir Ally, being greeted by His Majesty KING Salman bin Abdulaziz Al Saud, at SAFA ROYAL Palace, MAKKAH, Kingdom of Saudi Arabia.

 

Amb. Dr. Ally, On Friday, May 31, 2019 (corresponding to 26 Ramadan 1440 A.H.), Saudi Arabia hosted the 14th Islamic Summit Conference in Makkah Al-Mukarramah.

This DYNAMIC is seen in the USA-Iran standoff, CARICOM NATIONS and GLOBALLY,  where narratives around DEMOCRACY, SOVEREIGNTY, and SECURITY are complex.

   3Ds:  DENY…DEFLECT…DESTROY.

             5 Recommendation

  1. SINGAPORE and QATAR GOVERNMENT MODELS FOR BEST PRACTICES  including ZERO Corruption.
  2.   Embassy in RIYADH, SAUDI ARABIA with OIC 57 Nations AND IsDB with 57 Nations
  3.   Embassy in Addis Ababa, ETHOPIA: AU with 55 Nations.
  4.   Embassy in NORWAY.
  5. DUBAI  BEST PRACTICES for MEGA PROJECTS with a GUYANA MINISTRY OF PLANNING FOR 10/20/30 YEARS.
Amb. Dr. Shamir A. Ally with His Excellency Adel Al-Jubeir, KSA Minister of State, Ministry of Foreign Affairs, HE Served as KSA Minister Foreign Affairs through 2018. We know each other whilst HE Served in 1988 as KSA Press Attaché in Washington, DC. USA.
Amb. Dr. Shamir A. Ally at an OPEC Conference
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