Global Geo-political Series: Malaysia calls Muslim countries to ban USD for oil trade

The Malaysian Indian Congress (MIC), which is a Malaysian political party and is one of the founding members of the ruling coalition, Barisan Nasional, previously known as the Alliance that has been in power since the country achieved independence in 1957, has called on the Muslim countries who are blessed with an abundance of oil to ban U.S. dollar for oil trade in response to President Donald Trump’s unilateral recognition of Jerusalem as Israel’s capital.

Last week, President Trump recognized Jerusalem as the Capital of Israel despite warnings from many Arab countries such as Jordon, Lebanon and Allies like the European Union, United Kingdom etc. MIC treasurer-general Datuk Seri S. Vell Paari said, “The power and influence possessed by the King of Saudi Arabia, King Salman Abdulaziz Al Saud, and Prime Minister Datuk Seri Najib Razak will be able to convince oil-producing countries to do away with the trading of oil in the US dollar…. Since the Muslim world is blessed with oil, it could be the only practical ‘weapon’ to be used against the United States”.

Manu countries such as Venezuela and Iran have already called on other countries to ban U.S. dollar for oil trading to end United States’ global dominance via the use of Dollar. However, that doesn’t seem very likely, especially with Saudi Arabia not on board. The ties between Saudi Arabia and the United States have grown stronger under the Trump Presidency thanks to latter’s hard stance towards Saudi Arabia’s arch-rival in the region, Iran.  

While Saudi Arabia condemned the move saying, “The Kingdom of Saudi Arabia followed, with great disappointment, the announcement made by the President of the United States Donald Trump, recognizing Jerusalem as the capital of Israel and relocating the United States’ embassy to Jerusalem,” the reaction has been pretty mute, which says Saudi Arabia is privately on board with the decision because Trump wouldn’t have moved ahead if Saudi Arabia presented a threat during a conversation with President Trump.  

Without the backing of Saudi Arabia, any such move would be futile.