new oil futures contract trading in Yuan
Will This Deal Be a Blow to the Petrodollar?
The new oil futures contract is one of the many Chinese efforts to internationalise their currency. Yet the adoption pace has been slow. However, there could be a couple of catalysts that could cause the currency to grow quicker. If Saudi Arabia starts accepting Chinese currency in exchange for oil, it could increase the Renminbi’s growth, and deal a massive blow to the petrodollar.
US dollar
Make Way for the Petroyuan
China is also looking to promote the Yuan around the world to become more prominent in international trade. This is a very big deal. Especially as it is coming at a time when there are increasing tensions between the US and China on trade.
Geopolitics at Play in China
Geopolitics at Play in China
China is now embroiled in an internal political struggle around the efforts of President Xi to make himself the most powerful Chinese leader since Mao.
When Will It Stop?
When Will It Stop?
Given China’s economic growth is relatively healthy, you have to ask why capital isn’t interested in hanging around.