China is Trading Oil in Non-Dollar Currencies

September 14th, 2012
in econ_news, syndication

oil-barrel-yuanEconintersect:  China has started to trade oil using currencies other than the U.S. dollar, according to an article at Examiner.com.  According to Examiner.com Russia and China have agreed to conduct all sales from Russia without using the dollar.  For obvious reasons the transactions between Iran and China will not use the dollar.  Those two countries alone would remove 25% of China's oil trade away from the dollar.  If Venzuela were to follow nearly 40% of China's oil trade would be non-dollar.

Follow up:

This is not the first mention of trading for oil in currency other than the dollar.  In early 2011 GEI News reported that India and Iran were discussing using gold as the medium of exchange.

china-sources-of-oil

China is one of the reasons that the economic sanctions of the west against Iran are not fully effective.  China, the world's third largest oil importer, gets 16% of its oil from Iran.  But  they are doing so under an exemption from the embargo, as are India and more than a dozen other countries.  However, according to Reuters, the sanctions are still partially effective, slashing Iran's oil exports from about 2.4 million barrels in 2011 a day to approximately 1 million this year.

John Lounsbury

Sources:









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1 comment

  1. Frank Li (Member) Email says :
    ****-

    The Chinese currency RMB will become an alternative reserve currency to the US$ within 10 years.





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