Submitted by DirtPerson Steve
China Settles First LNG Trade In Yuan
China has just completed its first trade of liquefied natural gas (LNG) settled in yuan, the Shanghai Petroleum and Natural Gas Exchange said on Tuesday.
Chinese state oil and gas giant CNOOC and TotalEnergies completed the first LNG trade on the exchange with settlement in the Chinese currency, the exchange said in a statement carried by Reuters.
The trade involved around 65,000 tons of LNG imported from the United Arab Emirates (UAE), the Shanghai Petroleum and Natural Gas Exchange added.
The French supermajor, one of the world’s top LNG traders, confirmed to Reuters that the trade involved LNG imported from the UAE, but declined to comment further on the deal.
China has been looking for years to establish more trade deals in yuan to increase the relevance of its currency on the global markets and challenge the U.S. dollar’s dominance in international trade, including in energy trade.
During a landmark visit to Riyadh in December, Chinese President Xi Jinping said that China and the Arab Gulf nations should use the Shanghai Petroleum and National Gas Exchange as a platform to carry out yuan settlement of oil and gas trades.
“China will continue to import large quantities of crude oil from GCC countries, expand imports of liquefied natural gas, strengthen cooperation in upstream oil and gas development, engineering services, storage, transportation and refining, and make full use of the Shanghai Petroleum and National Gas Exchange as a platform to carry out yuan settlement of oil and gas trade,” Xi said in December, as carried by Reuters.
While the Chinese currency has made inroads in global trade, the yuan accounts for just 2.7% of the market, compared to the U.S. dollar’s share of 41%.
Over the past year, Russia has turned to trade in yuan in the wake of the Western sanctions on its exports, imports, and energy trade, as the Chinese currency has become Putin’s only alternative to reduce exposure to the U.S. dollar and the euro.
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Armageddon dead ahead.
Only for the USA
It’s global in the near term. Everything’s going cashless digital.
The US Dollar has been circling the toilet for quite some time.
It’s just finally slipping down the center drain….
To see what the next stop is for the US Dollar, please examine what happened to the Russian Ruble, circa 1992-93…
Do your research, folks, and see what happened to all the former USSR countries, and particularly Russia….
All courtesy of the (((Khazarian Mafia))), and their hate of Whites, Christians, and particularly, Russia.
This same KM is large-and-in-charge in the Biden Regime.
It’s always the same little hat, big nose tribe…
Every.
Single.
Time….
So … just when is $oro$ going to short the dollar — assuming he hasn’t already done so?
Personally, I can foresee a time when the chinese will try to stick it to the Russians and the Arabs … they’ve already created deadly dependencies among numerous african nations in furtherance of their belt & road initiative … they’re even running the port of haifa for the israelis (and, of course, our navy base is just a couple of miles away) …
AFAIK, the one thing the chinese DO have is enormous piles of gold that they’ve been buying up on the markets for some years … maybe that’s what’ll lull foreign nations into believing they can deal with them …
https://wallstreetonparade.com/
“The reassurances of Federal Reserve Chairman Jerome Powell and U.S. Treasury Secretary Janet Yellen that the U.S. banking system is sound.”
Lube up your bunghole. It might ease the coming pain.
It’s harder to displace a reserve currency than one might imagine – especially with worldwide capital flows as huge and interwoven as they are. I have no doubt that these changes will continue, but there is not yet a workable alternative.
China is the #2, soon to be #1, economy in the world. They have the economic muscle to make it happen right now & Uncle Sugar won’t have a thing to say about it.
They’ve been recalling their foreign gold reserves (and caught Australia trying to rip them off). It’s only going to pick up steam from here. This won’t take decades imho and the only thing Washington can do about it is war; which we haven’t won since WWII.
The Emporor has no clothes!
Have you forgotten the huge military victory over Grenada?
This guy agrees with you….
Dedollarization Is Not a Thing
It is intuitive to think that growing debt levels are unsustainable and hegemony is always temporary. History shows that eventually a new country takes over as the global hegemon and Ray Dalio’s books cover this in excellent detail. The long-term story is of course that nothing lasts forever. The reality is that this process of change takes 100’s of years and the situation in the last 35 years looks like this:
People like to throw around the phrase “gradually, then suddenly” as a witty rejoinder to suggest this is a nonlinear process that will unfold any day now. That only sounds smart when Hemingway says it.
To be clear: There is no structural dollar depreciation or dedollarization story. Usage of the USD is stable and changes in the value of the USD are cyclical.
CNY is gaining moderate importance in the global financial system, at the expense of other fiat currencies like EUR and JPY.
Much as we loathe USG, the dollar remains the most widely held reserve currency (59% of central bank reserves). Only 2-3% of central bank reserves are held in yuan. That may change, but not suddenly. Moreover, floating fiat currencies are versions of the same thing. Monetary change will come after a conflict and a realignment of power. That is how USD gained dominance, and why the powers are squaring up now.
The seller determines what payment terms are acceptable. The $ is not acceptable in Russia now. This will soon spread to every productive economy as inflation makes the $ no longer an option. It’s already impossible to use the $ to store wealth. That is one of the main functions of a currency.
Right Anon, everyone needs to take whatever money they can get together and buy the things you would normally buy all year NOW. Not kidding, buy as much as you can now, tomorrow it will be much higher and after that it gets even worse.
China plays the long game, while the US is playing a 2/4 year game based on election results. This was told to me by a Chinese businessman in the early 80’s and part of their 50 year plan was to be the world’s largest economy.
“Welcome to reality! It’s a big boat with a lot of holes, but we’re ALL in it together.” – Rick Sanchez
It’s just a matter of time before the U.S. Corporation starts accepting Yuan/Rubles as payment…that’s the day you realize that we are slaves of a truly Fascist nation.