empty
10.01.2023 02:32 PM
Oil for yuan, Gold as a decisive asset for China

This image is no longer relevant

Gold will be a deciding factor for China as the country seeks to bolster the yuan's international standing and continues to advance its plans to buy oil from Saudi Arabia.

In early December, during a visit to Saudi Arabia, Chinese President Xi Jinping urged the leaders of the largest oil-exporting country to accept the yuan for oil as the two countries seek to strengthen their geopolitical ties.

Saudi Crown Prince Mohammed bin Salman called the talks a "historic new phase in relations with China."

If Saudi Arabia starts trading oil in yuan, this will create additional incentive for the Chinese currency, bringing it one step closer to reaching critical mass at the international level.

Gold is a key factor in the further development of the petro-yuan system.

A gold-backed petro-yuan does not require full renminbi convertibility to function, so it allows China to both maintain control of its capital account and stimulate the internationalization of the yuan.

Support for oil trading in yuan with gold will play an important role in building the petro-yuan system.

The convertibility of the yuan into gold effectively turns the currency into a global investment asset for foreign renminbi holders, increasing their confidence in and demand for the Chinese currency.

Last December, China bought 30 tonnes of gold. A month before, they have already purchased about 32 tonnes. This was the first officially registered purchase since September 2019. China's gold reserves currently stand at 2,010 tonnes.

Analysts at the French bank said China has already made strategic progress in global currency markets as it seeks to weaken the U.S. dollar's position as the world's reserve currency.

They noted that because of Western economic sanctions, primarily from the U.S., Russia has adopted China's CIPS (Cross-Border Interbank Payment System) for its oil transactions, bypassing the global payment system SWIFT (Society for Worldwide Interbank Financial Telecommunication), which is dominated by the U.S. dollar.

Countries such as Iran, Venezuela and Indonesia currently settle some of their oil transactions in yuan.

The volume of trade and the ability to use the yuan for international payments may grow as more countries diversify to avoid the risk associated with the U.S. dollar. This event may eventually challenge the U.S. dollar-based global financial system, as the dollar's status and importance is largely based on energy and commodity markets.

Pilih carta masa
5
min
15
min
30
min
1
jam
4
jam
1
hari
1
minggu
Jana pendapatan melalui perubahan kadar mata wang kripto dengan InstaForex.
Muat turun MetaTrader 4 dan buka dagangan pertama anda.
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    SERTAI PERADUAN

Artikel yang dicadangkan

Adakah Momentum Pasaran Kini Mempunyai Sokongan untuk Terus Bertahan? (Kemungkinan Penurunan AUD/USD dan Pertumbuhan dalam GBP/USD)

Minggu yang akan datang dijangka tidak banyak kejadian utama atau tajuk berita dramatik—tiada janji baharu daripada Donald Trump untuk menggemparkan dunia. Walau bagaimanapun, masih terdapat faktor yang patut diperhatikan yang

Pati Gani 09:52 2025-05-19 UTC+2

Pasaran Bertindak di Luar Jangkaan

Tiada apa yang kelihatan penting. Seseorang mungkin berfikir bahawa selepas Rumah Putih menandatangani perjanjian perdagangan dengan Britain dan China, serta selepas lawatan Donald Trump ke Timur Tengah, S&P 500 akan

Marek Petkovich 09:18 2025-05-19 UTC+2

Apa yang Perlu Diberi Perhatian pada 19 Mei? Ulasa Peristiwa Fundamental untuk Pedagang Baharu

Pada hari Isnin, terdapat sangat sedikit peristiwa makroekonomi yang dijadualkan. Satu-satunya penerbitan penting ialah anggaran kedua Indeks Harga Pengguna (CPI) untuk bulan April di Zon Euro, yang tidak mempunyai kepentingan

Paolo Greco 07:34 2025-05-19 UTC+2

Pratonton Mingguan EUR/USD: PMI, IFO, dan Rizab Persekutuan

Kalendar ekonomi untuk minggu hadapan termasuk beberapa peristiwa fundamental yang penting bagi pasangan EUR/USD. Namun, tanpa maklumat mengenai prospek rundingan perdagangan, faktor fundamental "klasik" yang kecil sekalipun boleh menjadi lebih

Irina Manzenko 06:27 2025-05-19 UTC+2

Gambaran Keseluruhan GBP/USD – 19 Mei: Apakah yang Dijangkakan daripada Inflasi AS?

Pasangan mata wang GBP/USD terus bergerak secara mendatar pada hari Jumaat, satu corak yang telah berterusan selama sebulan. Seperti yang ditunjukkan dengan jelas dalam carta 4 jam, harga kebanyakannya bergerak

Paolo Greco 04:42 2025-05-19 UTC+2

Gambaran EUR/USD – 19 Mei: Perang Perdagangan Memperlahan Dolar

Pada hari Jumaat, pasangan mata wang EUR/USD didagangkan dengan sedikit penurunan, dan secara keseluruhan, volatiliti telah berkurang selepas "April gila." Dolar A.S. telah mengukuh lebih dari sebulan, walaupun pertumbuhan

Paolo Greco 04:42 2025-05-19 UTC+2

Dolar A.S. Tinjauan Mingguan

Tidak banyak berita penting yang akan berlaku di Amerika Syarikat dalam minggu hadapan kecuali seseorang berusaha untuk mencari tahu apa yang berlaku di Pejabat Oval. Keadaan ini telah berlangsung selama

Chin Zhao 00:35 2025-05-19 UTC+2

Pound British. Pratonton Mingguan

Latar belakang berita dari Britain bagi minggu hadapan dijangka berada pada tahap kepentingan yang rendah, setanding dengan situasi di Eropah. Namun begitu, terdapat satu laporan dari UK yang tidak boleh

Chin Zhao 00:35 2025-05-19 UTC+2

Mata Wang Euro. Pratonton Mingguan

Seperti yang telah menjadi kebiasaan dalam beberapa bulan kebelakangan ini, latar belakang berita ekonomi memberikan pengaruh yang sangat minimum terhadap instrumen kewangan. Donald Trump dan dasar perdagangannya kekal sebagai pemacu

Chin Zhao 00:35 2025-05-19 UTC+2

USD/JPY. Analisis dan Ramalan

Pemegang saham yang optimis terhadap yen Jepun tidak terjejas dengan ketara oleh laporan KDNK yang mengecewakan bagi suku pertama Jepun. Ini kebanyakannya kerana menjangkakan bahawa Bank of Japan akan menaikkan

Irina Yanina 18:38 2025-05-16 UTC+2
Tidak boleh bertanya sekarang?
Tanya soalan anda di Ruangan bersembang.
Panggilan semula Widget
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.