Now that King Salmon has gone to Moscow and bought the Russian’s S-400 air defense system, all sorts of things become possible.
China is the marginal buyer of oil in the world, and there has been a big shift in its imports toward Russia and away from Saudi Arabia. The Iranian sphere (Iran+Iraq+Oman) remain roughly constant:
China may now have the leverage to persuade the Saudis to accept RMB payment for oil. That would be a giant step towards internationalization of the RMB. A year ago I would have dismissed this as science fiction. Now, maybe not so much.
Nikkei Asian Review reported last month that China is preparing to launch a crude futures contract priced in yuan:
China is expected shortly to launch a crude oil futures contract priced in yuan and convertible into gold in what analysts say could be a game-changer for the industry.
The contract could become the most important Asia-based crude oil benchmark, given that China is the world’s biggest oil importer. Crude oil is usually priced in relation to Brent or West Texas Intermediate futures, both denominated in US dollars.
China’s move will allow exporters such as Russia and Iran to circumvent US sanctions by trading in yuan. To further entice trade, China says the yuan will be fully convertible into gold on exchanges in Shanghai and Hong Kong.
Is King Salmon related to Chinook Salmon, perchance?
SalmAn not SalmOn. He’s not a fish.
The F!!! SALMON?! seriously?!
I hope king Salmon este Salman will come across this and laugh hysterically
That is the first step towards ending American hegemony & third world war as Americans will never wantthus to happen. They have been working on encircling China since 2011 & it will be completed in 2018
Lol….the folly is such a venture is that 1) Saudi, Iran and Russia will not be able to use the yuan to purchase anything elsewhere in the world..what’s the use of having a lot of petroyuans that can’t be used to buy anything elsewhere in the world, especially the West, where the dollar is the key to their economic system.
2) Such internationalization of the yuan can not work with a controlled economy like China at the top. Currency respond to market forces.
3) The West created a world economic system, with the dollar as the unit of exchange, will China create an economic system with the yuan as the unit of exchange, will other nations be willing to accept changes in the unit of exchange in global economy..
hahahhaah.
U cannot buy anything else from yuan? Are u kidding, U r using everything from china, and u are saying we cannot buy anything from yuan??Really
Salmon is the same version suleiman in Arabic
"China is expected shortly to launch a crude oil futures contract priced in yuan and convertible into gold in what analysts say could be a game-changer for the industry."
Last I heard, gold can buy just about anything.
Wells Fargo has no more gold reserve. This market scheme will start free fall on US economy.