Everyone knows that China has lion’s share in oil trading in the world. Now China wants to trade oil in her own currency “Yuan”. First time China declared this plan in September 2017.
In the beginning of the year 2017, China declared that China will trade of crude oil in Yuan which is convertible into Gold. Consequently, it can be a game changer for the industry in future. However, according to analysts, it is a threat to US dollar. Some others are saying that it is the death of petrodollar deal.
This deal was made by US president Richard Nixon and Shah Faisal in 1974. Moreover, Other exporters of oil like Russia, Venezuela, and Iran can nullify the American sanctions and they will be able to export oil in Yuan also. By doing this, it is probability, the world will see a boom of Yuan.