In Unprecedented Move, China Plans To Pay For Oil Imports With Yuan Instead Of Dollars
- In Unprecedented Move, China Plans To Pay For Oil Imports With Yuan Instead Of Dollars
by Tyler Durden, https://www.zerohedge.com/
Just days after Beijing officially launched Yuan-denominated crude oil futures (with a bang, as shown in the chart below, surpassing Brent trading volume) which are expected to quickly become the third global price benchmark along Brent and WTI, China took the next major step in the challenging the Dollar’s supremacy as global reserve currency (and internationalizing the Yuan) when on Thursday Reuters reported that China took the first steps to paying for crude oil imports in its own currency instead of the US Dollars.
A pilot program for yuan payment could be launched as soon as the second half of the year and regulators have already asked some financial institutions to “prepare for pricing crude imports in the yuan“, Reuters sources reveal.