In a massive move against the global dominance of the U.S. dollar, China’s highly anticipated Petro-Yuan has been launched in Shanghai. With China being the world’s largest consumer of oil, this new currency is an international game-changer that was a predicted move by China to directly compete—and subsequently devalue—the US dollar.
Analysts call the plan, announced by Beijing in September, a huge move against the dollar’s global dominance – and reserve currency status.
The Chinese government reportedly plans to allow the crude oil futures contract priced in yuan to be fully convertible into gold.
As TFTP reported at the time, in addition to serving as a hedging tool for Chinese companies, the contract will allow for increased use of the yuan in trade settlement.
These contracts will thus enable China’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, according to Bloomberg.
Joke: What does the liberal party of Ontario and a minivan have in common? They both have 7 seats.