While the US tries to maintain its leadership through sanctions and harsh pressure, the Chinese authorities are quietly doing their job, waiting for the yuan to expel the dollar from the currency throne. The new sanctions against Iran will only accelerate this process, reports Vestfinance.
According to the newspaper , the oil futures in yuan showed a sharp growth by rising by 5% to the maximum mark established by the stock market, since in this market the quotes within a day can fluctuate only within the limit of 5% in both directions. The explosive growth coincided with the introduction of the first part of the sanctions against Iran by the United States.
This has been the strongest growth of oil futures in yuan since its launch in March of this year. In addition, an absolute record value of 537.2 yuan per barrel has been set on August 6.
The pressure exerted by the United States around the world is due in large part to the fact that the dollar is a reserve currency, but few countries like this situation, and least China. That is why it was decided to launch the petroyuanes, say the authors of the article.
In this way, China will receive an increase in transactions in its currency, while other countries, in particular Iran, will have the opportunity to trade oil bypassing US sanctions, that is, bypassing the dollar.
"This is a turning point: the US geopolitical activity only contributes to the withdrawal of the dollar," says the publication.
In April, it was reported that China was taking its first steps to pay for oil imports with yuan instead of dollars.
According to the proposed plan, Beijing was going to start the purchases from Russia and Angola, two countries that, like China, are trying to end the global dominance of the dollar. By the way, they are also the two largest suppliers of crude oil to China along with Saudi Arabia.
It is obvious that the transfer to the yuan of oil supplies imported to China is already a huge blow against the dollar, since for many years all these deliveries were made in US currency, which is why it is called petrodollar.
Oil is the best-selling product in the world. The annual turnover is estimated at 14 trillion dollars, sum similar to China's GDP last year. Currently, almost all world oil trade is done in dollars, with the exception of an estimated 1% in other currencies, before the launch of futures in yuan. Now the basis of United States dominance in the world economy is under threat.