China Aims to Dethrone the Dollar

Last month, the Nikkei Asain Review reported on a move by China that could take a first step toward dethroning the US dollar. The proposed launch of a gold-backed, yuan-denominated oil futures contract got a lot of attention in alt-media circles, but didn’t make much of a splash in the mainstream. But now the mainstream is sitting up and taking notice.
During an interview with Bloomberg TV Tuesday, Graticule Asset Management Asia CEO Adam Levinson said China rolling out a yuan-denominated oil contract within the next few months will be ‘a wake-up call’ for investors who haven’t paid attention to the plans.
The move potentially creates a way for oil exporters to circumvent US dollar-denominated benchmarks by trading in yuan. The contracts will reportedly be priced in yuan, but convertible to gold.
Levinson said besides serving as a hedging tool for Chinese companies, the yuan-backed oil contracts will aid a broader government agenda of increasing the use of the yuan in trade settlement.

This post was published at Schiffgold on OCTOBER 25, 2017.

 

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