Several Middle Eastern countries have moved towards settling trade transactions in local currencies, as this would provide various benefits such as supporting the exchange rate of the national currency, improving foreign exchange reserves, in addition to deepening trade, which enhances the chances of achieving economic integration.

It is worth noting that the Western sanctions imposed on several countries like Russia, Iran, and Syria have led to a shift towards settling their trade transactions in domestic currencies, creating common trends and interests with countries facing a shortage of US dollar liquidity, contrary to the aspirations of some countries, such as China, to end the US dollar’s dominance of cross-border financial transactions, creating opportunities for local currency trade agreements.

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