Russian and Chinese hydrocarbon giants, Gazprom and China National Petroleum Corporation, have agreed to switched payments for gas supplies to rubles.
- Sep 13, 2022, 5:00 PM CDT
China has long regarded the position of its renminbi currency in the global league table of currencies as being a reflection of its own geopolitical and economic importance on the world stage.The long-mooted prospect of the end of the U.S.
Russia itself has long held the same view on the advantages for it of removing the U.S. dollar’s hegemony in global hydrocarbons pricing, but, while China was unwilling to overtly challenge the U.S. during the height of its Trade War under the highly unpredictable former U.S. President Donald Trump, it could do little about it on its own. A sign of Russia’s intent, though, came just after the U.S.
The further expansion of other currencies – realistically only the RMB – to subvert the dominance on U.S. dollar-pricing of oil and other hydrocarbons is also dependent on the currency’s use in countries other than those already under U.S.-led sanctions. Happily, for China, another leader of the Middle Eastern world – Saudi Arabia - has shown very willing to expand its RMB-dominated business with China, including as payment for oil supplies.
Given that the vast majority of Saudi government borrowing in the previous few years has been denominated in U.S. dollars, a switch away from USD-funding would allowed Saudi more flexibility in its overall financing structure, albeit after an initial dislocation connected to itscurrency peg to the U.S. currency. In the past few months, there has certainly been a noticeable further shift by Saudi Arabia towards China, as exclusively catalogued by OilPrice.com.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
EU must stand together in the energy war against Russia\n\t\t\tLet our global subject matter experts broaden your perspective with timely insights and opinions you\n\t\t\tcan’t find anywhere else.\n\t\t
Read more »
Russia poses 'most immediate threat' to UK security, says ex MI6 chiefRussia poses 'the most immediate threat' to UK security, a former MI6 chief has warned.
Read more »
Zelensky Calls For More Weapons To Help Ukraine's Counteroffensive | OilPrice.com'Since the start of September, our soldiers have already liberated 6,000 square kilometers of Ukrainian territory in the east and south, and we are moving further,' Zelenskiy said in his nightly address.
Read more »