#ForexChief #espo #forexnews #PetroChina #Sinochem #cnooc #worldnews #Sinopec⠀
💵 The dollar is losing status: who benefits from it?⠀
👉 So far, greenback has done a pretty good job of serving as the world's reserve currency for international transactions and capital accumulation. Now Beijing is actively trying to ruin the dollar's reputation. And the commodity market will help him in this.
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United States and Russia do not conduct mutual hostilities, but sanctions and counter-sanctions are tantamount to economic warfare. Russia is ready to abandon the dollar in favour of national currencies for all export items, including wheat, metals and energy. Asian Dragon seizes the chance to strengthen the position of the yuan in world trade.
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As early as February 4, China and Russia signed a «fresh» agreement (approximately $117 billion), in which the dollar and yuan were assumed to be the settlement currency. After the escalation of conflict in Ukraine, Beijing concluded an agreement with Moscow on «extended» mutual support: now it is supposed to pay for the purchase of strategic raw materials exclusively in yuan.⠀
Several Chinese companies have already purchased ESPO-grade coal and oil for yuan, although the state-owned Sinopec, CNOOC,
PetroChina and Sinochem are still refusing new purchases for fear of being subject to sanctions.
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Saudi Arabia is already forming a scheme to sell oil for yuan, as Riyadh has taken a neutral position in the confrontation between the US and Russia. Nigeria is also encouraging local businesses to abandon the dollar in favour of the Chinese currency.
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Depriving dollar of status of world reserve currency is a key element of China's strategy.The systematic, Chinese soft aggression, and displacement of dollar from the commodity market pose a serious threat to the US, but in the process of political battles, no one pays attention to this fact so far. So we are waiting for new interesting scenarios.
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Profits to y’all!