In what is a landmark development, China and France have completed an LNG gas trade using the Chinese yuan, thus ending the reliance on the US dollar for energy trades. Moreover, Reuters reported that the transaction involving 65,000 tonnes of LNG from the UAE marked the first yuan-settled LNG trade through the Shanghai Petroleum and Natural Gas Exchange.
Chinese National oil company, CNOOC, and France’s TotalEnergies completed the transaction on Tuesday, according to reports. Additionally, Energy World reported TotalEnergies confirmed the transaction “involved LNG imported from the UAE but did not comment further.”
China Completes Yuan-Settled Energy Trade
All eyes have been on the state of the US dollar, with reports coming regarding the massive implications of potential de-dollarization. Subsequently, amidst a budding banking crisis, and macroeconomic factors, a landmark transaction has taken place that could grant new merit to those concerns.
China and France have completed an LNG gas trade using the Chinese Yuan in a landmark transaction that ends the reliance on the US dollar in energy trades. Moreover, the development showcases the growing prominence of the yuan amidst the growing concern connected to the US dollar.
The Chinese yuan’s establishment as an international currency has been a focus for the nation. Additionally, the country has set to utilize it in gas and oil trades in recent years as the dollar has stumbled. Conversely, Russia has embraced the Chinese currency amidst various sanctions.
Chinese President Xi Jinping spoke during a recent visit to the Saudi capital Riyadh, according to Energy World. Stating “that China would ‘make full use’ of the Shanghai exchange as a platform to carry out yuan settlement of oil and gas trades.”