Dollar Dumped: How the first China-UAE gas deal in yuan is a big blow to US - First Post

4.10.23 - Dollar Dumped

Gold last traded at $1,991 an ounce. Silver at $24.88 an ounce.

Dollar Dumped: How the first China-UAE gas deal in yuan is a big blow to US - First Post

China struck a blow against the US dollar last month.

Beijing and Abu Dhabi in March settled a gas deal in yuan for the first time.

What happened?

In March, China's national oil company CNOOC and France's TotalEnergies settled an LNG trade in yuan for the first time.

The exchange was done through the Shanghai Petroleum and Natural Gas Exchange (SHPGX), as per Global Times.

While TotalEnergies confirmed to Reuters that the transaction involved LNG imported from the UAE, it did not comment further.

What does it mean?

A prominent economist, speaking to the website The Cradle anonymously, said, "The French either resorted to the yuan due to the acute shortage of Russian gas supplies to the European continent, or they have reserves in the Chinese currency that they want to use."

The economist added that the move comes as countries like UAE sense a "global imbalance of power" and look to expand relationships.