In March 2018, China launched yuan-denominated oil futures contracts in Shanghai to compete with the dominant US petrodollar. Photo: AP
In March 2018, China launched yuan-denominated oil futures contracts in Shanghai to compete with the dominant US petrodollar. Photo: AP
Diplomacy
Economy /  China Economy

Could US sanctions and closer Middle East ties fuel the rise of China’s petroyuan?

  • China could be looking to secure long-term energy deals with Middle Eastern nations to increase the international use of its currency, analysts say
  • Use of the so-called petroyuan could gain traction as energy exporters like Russia and Iran, which are subject to US sanctions, look to limit dollar exposure 

Karen Yeung
Karen Yeung

Updated: 1:00am, 3 Apr, 2021

Why you can trust SCMP
In March 2018, China launched yuan-denominated oil futures contracts in Shanghai to compete with the dominant US petrodollar. Photo: AP
In March 2018, China launched yuan-denominated oil futures contracts in Shanghai to compete with the dominant US petrodollar. Photo: AP
READ FULL ARTICLE