China pushes faster on de-dollarisation [Gas in Transition]

China pushes faster on de-dollarisation [Gas in Transition]

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Natural Gas News
China pushes faster on de-dollarisation [Gas in Transition]

Summary

China’s push for a different world order that diminishes the US has extended to using its own currency instead of the dollar to pay for oil and gas imports, but the so-called “de-dollarisation” of some Chinese trade will not weaken the global importance of the greenback anytime soon. [Gas in Transition, Volume 3, Issue 9] by: Shi Weijun

China has stepped up efforts to settle more of its enormous oil and gas trade in its own currency – known as the renminbi (RMB) or yuan – as Beijing increasingly flexes its muscles in global commodities trade to chip away at the dominance of the US dollar, one of the most visible and enduring signs of American power worldwide. In August Singapore’s LNG trading company Pavilion Energy used yuan to pay for an LNG cargo sold by state-owned offshore specialist CNOOC, according to the Shanghai Petroleum and Natural Gas Exchange (SHPGX). Pavilion paid CNOOC for a 65,000-tonne cargo that will be sourced from an unnamed northeastern Asian country and delivered in October, according to the SHPGX, which executed the trade. The deal was Pavilion’s first publicly reported purchase of LNG in yuan from a Chinese oil and gas major, and the latest commodity trade involving China to be settled in yuan as Beijing steps up efforts to inc...