China's launch of 'petro-yuan' in two months sounds death knell for dollar's dominance
The so-called petro-yuan is a “wake up call” for investors who haven’t paid attention to the Chinese plans, according to the head of Graticule Asset Management Asia Adam Levinson, as quoted by Bloomberg.
Petrodollar demise? #Russia, #China, #Iran move oil trade away from US dollar – Jim Rogers https://on.rt.com/8nbd
Petrodollar end looming as China & allies dump it in oil trading - Jim Rogers — RT Business
Beijing has announced plans to start a crude oil futures contract priced in yuan and convertible into gold. The step might lead to the emergence of a new Asia-based crude oil benchmark to compete...rt.com
Earlier this year, the Chinese government announced plans to start a crude oil futures contract priced in yuan and convertible into gold. The contract will enable the country's trading partners to pay with gold or to convert yuan into gold without the necessity to keep money in Chinese assets or turn it into US dollars.
The new benchmark will reportedly allow exporters, such as Russia, Iran or Venezuela to avoid US sanctions by trading oil in yuan.
Venezuela ditches dollar for oil payments to dodge US penalties https://on.rt.com/8n6l
Venezuela ditches dollar for oil payments to dodge US penalties — RT Business News
Caracas has ordered oil traders to convert crude oil contracts into euro and not to pay or be paid in US dollars anymore, according to sources close to the matter as quoted by WSJ. The measure is...rt.com
The analyst said the new contract would be able to serve as a hedging tool for Chinese corporations, as well as support the government’s broader plans to extend the use of the national currency in trade settlement.
According to Levinson, Chinese companies might grow into anchor investors in Saudi Arabia’s initial public offering of its national oil giant, Saudi Aramco.
#China could shatter petrodollar by compelling #SaudiArabia to trade oil in yuan https://on.rt.com/8pk5
At the same time, some analysts are skeptical of China’s ambitious plan to create its own benchmark.
“Game changer it is not — at least not yet. But it is another indicator of the beginning of the glacial, and I emphasize the word glacial, decline of the dollar,” said Gal Luft, co-director of the Institute for the Analysis of Global Security, as quoted by CNBC.
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The end of US dollar hegemony has been a consistent message from Russian President Vladimir Putin.
“Russia shares the BRICS countries’ concerns over the unfairness of the global financial and economic architecture, which does not give due regard to the growing weight of the emerging economies. We are ready to work together with our partners to promote international financial regulatory reforms and to overcome the excessive domination of the limited number of reserve currencies,” Putin said two months ago during the BRICs summit in Xiamen.