A Chinese multinational has just purchased oil for the first time using the digital yuan (CBDC). The petrodollar is in trouble.
Oil and digital yuan
A little less than a year ago, Chinese President Xi Kinping told the Gulf Cooperation Council that he hoped to soon be able to buy the region’s oil in yuan.
A few months later, the Saudi finance minister declared in Davos that the kingdom was “open to discussion regarding payment for its oil in euros or yuan”.
Today, Chinese oil company PetroChina has completed the first e-CNY (digital yuan) transaction via the Shanghai Petroleum and Natural Gas Exchange. A shipment of one million barrels of crude oil was purchased from an undisclosed seller.
The fact that the transaction was carried out in CBDC offers a clue. Indeed, the public bank Bank of China recently signed a cooperation agreement with the largest bank in the United Arab Emirates, First Abu Dhabi Bank, on the occasion of the summit Belt and RoadEdit.
The Chinese and Emirati central banks also signed an agreement on the CBDC. Knowing that they are already collaborating on the project mBridge of the Bank for International Settlements (BIS) for cross-border payments.
Furthermore, the United Arab Emirates’ advisor on CBDC had already mentioned this potential collaboration in 2022. Shu-Pui Li had declared that Chinese companies prefer to pay in e-CNY and that companies in the United Arab Emirates would be happy to do so. receive.
In March, the China National Offshore Oil Corporation used the Shanghai Petroleum and Natural Gas Exchange to settle its first gas contract in (non-digital) yuan. The seller was the French company Total and the gas came from the United Arab Emirates.
Meanwhile, BRICS member countries have committed to using local currencies more regularly for trade.
Little by little, the world is turning away from the dollar, tired of placing its reserves in American debt. The freezing of 300 billion dollars and euros belonging to Russia has had its effect…
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