The petroyuan is seen as Beijing’s challenge to the US dollar, the dominant global currency in oil contract settlements.
UPDATE March 26, 2018:
The contract could reportedly be launched on March 26 on the Shanghai International Energy Exchange (INE). The exchange has recently received the approval from China’s State Council.
In December, the INE announced a successful completion of the fifth dry run in yuan-backed oil futures contract trading. It said that 149 of its members traded 647,930 lots in the rehearsal with a total value of 268.2 billion yuan. The exchange said the system met the listing requirements of crude futures after the exercise.
The Chinese government announced plans last year 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.
- Saudi Arabia Dumps United States ‘Petro-Dollar’ As Sole Oil Settlements.
- Russia Invests $14 Billion In Venezuela’s Orinoco Oil Fields & Gas Production
- Venezuela “Free Of The Rothschild Dollar Tyranny” Oil Priced In Chinese Yuan
- Iraqi Oil Surges 30% To China & 23% To India Surpassing Saudi Arabia As Fastest Growing Market
- Iraq’s Largest Oil Refinery Complex In Bayji Being Prepared To Be Placed Back Online: Iraqi Oil Sales Surges Surpassing Saudi Arabia As Fastest Growing Market
Since the 1970s, the global oil trade has almost entirely been conducted in US dollars. The largest energy consumer, China, is interested in having oil contracts in its own currency. Beijing wants to create an Asian crude oil benchmark that would better reflect pricing for the oil imported and consumed in the world’s top importing region Asia. It expects the new benchmark to rival North Sea Brent and US West Texas Intermediate.
Analysts say the success of the yuan oil futures contract depends on the Chinese regulation of the market, which could divert international investors from bringing huge volumes into the contract.
- Russian banks ready to switch off SWIFT – official
- Russia’s banking system has SWIFT alternative ready
- Russia To Cut Dependence On U.S. Dollar, Payment Systems
- Russia & China Met Twice Last Week to Propose Monetary Reset
- Russia & China Using Gold To Pave The Way To Economic Independence
- China Becomes 2nd Biggest Importer Behind Turkey of Russian Food Products: Dumps U.S. GMO Corn
- Russia And China Underway In Pricing Of Precious Metals: Ending Of The COMEX And London Mafia Markets.