Russia will soon issue $6 billion in bonds accepting Yuan as payment for its oil exports to China in 2018. Note that Russia is the world’s largest oil producer.
This is also set to coincide with Yuan oil futures contracts trading in Shanghai this coming year.
The resulting new global financial order, once completed, will almost completely replace the Bretton Woods agreement established in 1944.
China wants to dethrone the dollar from CNBC.
The crude oil futures contract will be priced in yuan and convertible into gold.
The contract will enable the country’s trading partners to pay with gold or to convert yuan into gold without the necessity to keep money in Chinese assets or turn it into US dollars.
The new benchmark will reportedly allow exporters, such as Russia, Iran or Venezuela to avoid US sanctions by trading oil in yuan.
In September, Venezuela ditched the US Dollar for oil payments. Venezuela has also ordered oil traders to convert crude oil contracts into Euro and not to pay or be paid in USD anymore.