Yuan oil contracts to strengthen China’s currency status to compete with US dollar – analyst

Yuan oil contracts to strengthen China’s currency status to compete with US dollar – analyst

As more countries pay for oil in yuan, the standing of the Chinese currency in global finance has grown, an analyst tells RT. However, its future path won’t be completely smooth, he warns. “If people started to pay for oil in yuan, central banks would need to hold reserves in yuan, leading to a massive increase in the global demand for yuan, reducing the cost of financing the Chinese economy,” IISS Singapore Senior Fellow for Economic & Energy Security Pierre Noel told RT.