China's mounting such a strong attack on the dollar's dominance that it's paying for almost all of its Russian oil imports in the yuan
The country has been using its own currency — the yuan — for almost all of the Russian oil it bought over the past year,reported on Thursday, citing multiple trading executives with direct knowledge of the matter.
"All seaborne Russian oil sales to China are now settled in renminbi since the price cap, sidelining the last small number of banks that were handling US dollars," one executive told Reuters, referring to the yuan by it's official name.imposed by a G7-led coalition. The cap makes it extremely complicated for banks to process payments in the greenback, the source told Reuters.
While Reuters did not specify the proportion of Russian imports that China is paying for in the yuan, the total settlements on the Cross-Border Interbank Payment System — China's version of the inter-bank messaging system SWIFT — jumped 22% year-on-year to the equivalent of $14 trillion in 2022, Reuters reported citing Chinese central bank data.
To contextualize this, China imported $88 billion worth of major commodities including crude oil and fuel oil from Russia in 2022 — up 52% in value from 2021. And much of this trade has been settled using the yuan amid sanctions and boycotts against Moscow — which includeChina and Russia have been moving away from the dollar for years.But their adoption started to gain pace only after the Ukraine war started.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
USD/CNY fix: 6.9299 vs. last close of 6.9200In recent trade today, the People’s Bank of China (PBOC) set the yuan at 6.9299 vs. the last close of 6.9200 and the estimate of 6.9301. About the fix
Read more »
USD/CNY fix: 6.9101 vs. the last close of 6.9288In recent trade today, the People’s Bank of China (PBOC) set the yuan at 6.9101 vs. the last close of 6.9288 and the estimate at 6.9102. About the fix
Read more »
What Will 2023 Bring for Homeowners and Potential Homebuyers?Amid low inventory and rising interest rates, some are painting a bleak picture for potential homebuyers in 2023. But some surveys suggest buyers remain optimistic. Compare reports from FortuneMagazine, insider and foxbusiness:
Read more »
AI startup pitch decks that founders used to raise millions from VCsAfter ChatGPT, AI startups are poised to boom. See 16 pitch decks used by founders in generative AI, health, and enterprise.
Read more »
Housing market outlook: rent & home prices, Ivy Zelman, BiggerPockets2 top housing experts break down why they expect a downturn in prices that could last several years, and how it might impact buyers in very different ways
Read more »
Meet the tan, shredded, and jiu-jitsu-loving Mark ZuckerbergInsider tells the global tech, finance, markets, media, healthcare, and strategy stories you want to know.
Read more »