Yuan makes oil and gas trade inroads

But the dollar still remains overwhelmingly the favoured currency

China’s status as the world’s biggest buyer of oil and gas has helped the country’s efforts to settle more purchases in its local currency gain some traction this year. But the potential rise of the yuan in international energy trading is unlikely to dislodge the US dollar from its dominant position in the global system any time soon. Recent economic and geopolitical developments have increased the potential attractiveness of trading oil and gas in non-dollar currencies—particularly the yuan, which is officially known as the Renminbi. After seeing how Western institutions froze Russian financial assets in spring 2022, Beijing is keener than ever to pursue its ‘de-dollarisation’ ambitions. Ch