While China could start buying oil in yuan in 2018, an expert interviewed by RT believes that Beijing has all the cards in hand to successfully break the monopoly petrodollar, which had been unsuccessful Muammar Gaddafi.
“The idea of buying oil with currencies other than the dollar is not new”: Alexander Egorov, a strategist at Teletrade, told RT about his analysis of a major economic change in the making, namely the emergence of petroquan.
The strategist stresses that the idea of going without the dollar to pay its energy bills has always been strongly resisted by the United States. “An example is Muammar Gaddafi, who proposed to issue the gold dinar, a regional currency based on the precious metal and which was intended to be used to buy oil,” he recalls.
But the Chinese attempt to spend petrodollars could conversely be successful Beijing have many more advantages that the former Libyan leader. “With the Chinese role in the world economy and growing interest in the yuan, China is protected by a” nuclear shield, “says Egorov, who believes that Beijing can afford to try to break the monopoly of the Chinese economy. petrodollar, and that this would give “even more weight to the yuan”.
“In addition, China is the largest consumer of oil in the world and, therefore, all global producers of commodities will have to rely on the strategy of the Chinese authorities,” he continues. Alexander Egorov also considers the timing of the petro-juan launch perfect, as key oil exporters such as Iran, Venezuela and Russia are currently under pressure from US sanctions.
The strategist acknowledges, however, that it will take a long time before the petro-juan becomes a real threat to the petrodollar, and that for this it will be necessary to garner support from the biggest producers like Russia, but also Saudi Arabia .
According to several sources quoted by Reuters on March 30, China could launch a pilot program to pay its oil in yuan in the second half of 2018. An action that is part of a real dynamic background: as early as 2012, Iran began accepting to sell its gas and oil in yuan, followed by Russia in 2015. In response to the financial sanctions imposed by Washington against Caracas, Venezuela did the same on September 15