Commissar SFLUFAN Posted March 17, 2022 Share Posted March 17, 2022 Yuan jumps after report Saudis consider its use in oil deals WWW.ALJAZEERA.COM Sanctions imposed on Russia have brought to the fore questions about alternatives to US currency-based markets. Quote The Chinese yuan reversed earlier declines and jumped toward its highs of the day following a report by Dow Jones that Saudi Arabia is in active talks with Beijing to price some of its oil sales to China in the currency. The offshore yuan climbed as much as 0.1% to 6.3867 per dollar, close to the session peak it reached during Asian trading. The currency had weakened as much as 0.3% in U.S. trading before the report on Saudi Arabia. While the U.S. dollar is the preeminent currency of exchange in global trade and oil markets in particular, other currencies such as the renminbi — as China’s currency is also known — have been making headway in cross-border transactions. Quote Link to comment Share on other sites More sharing options...
Zaku3 Posted March 17, 2022 Share Posted March 17, 2022 4 minutes ago, Commissar SFLUFAN said: Yuan jumps after report Saudis consider its use in oil deals WWW.ALJAZEERA.COM Sanctions imposed on Russia have brought to the fore questions about alternatives to US currency-based markets. Russia is gonna have no choice but to get off the dollar due to the sanctions and I expect others to follow. The west is too erratic as an ally to trust to not get locked out of the world economy. China and Russia will be the driving force. Russia because it has no choice and China because its gonna want to be able to "go in" when it feels it needs to. I feel the war in Ukraine can be looked at as an end of the "pax americana". Nuclear weapons should prevent major wars but regional powers will want to use military force where they deem it appropriate. Quote Link to comment Share on other sites More sharing options...
Commissar SFLUFAN Posted March 20, 2022 Author Share Posted March 20, 2022 An economist explains why Saudi Arabia and China are looking to ditch the dollar in a new oil deal — and where Beijing could target next as it spreads yuan adoption MARKETS.BUSINESSINSIDER.COM "A potential deal in yuan is a sign that the world is looking for some counterweight to the US dollar," said a Boston College economist. Quote A potential yuan-based oil deal between Saudi Arabia and China could signal more unease with reliance on the US dollar, while also serving as a preview of how Beijing could advance its currency in other parts of the world. The Wall Street Journal reported recently that Saudi Arabia is in talks to sell oil to China and be paid in yuan, after trading crude exclusively in dollars for nearly 50 years. Both countries could benefit from a demotion of the dollar's status on the world stage, according to Aleksandar Tomic, an economist, professor and associate dean at Boston College. "While any deal would be symbolic, the Chinese are not alone in the search for a non-dollar reserve currency," Tomic told Insider. "Other countries' need for dollars exposes them to the US financial sector, and consequently gives the US political leverage." Quote Link to comment Share on other sites More sharing options...
unogueen Posted March 20, 2022 Share Posted March 20, 2022 Pax americana is a weird term to me. Quote Link to comment Share on other sites More sharing options...
Anathema- Posted March 20, 2022 Share Posted March 20, 2022 We see how well the Chinese version of American tires have been performing in Ukraine, just because they want to use the Chinese version of the dollar doesn't mean it's going to turn out any better. Quote Link to comment Share on other sites More sharing options...
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