China settles first LNG trade in yuan

Is it us, or is the de-dollarization campaign kicking into overdrive?

Whether it’s because China sees weakness in the current administration or they just want to ditch the buck as quickly as possible, it is evident that the world is shunning the buck.

According to Reuters, Chinese national oil company CNOOC and France’s TotalEnergies completed Beijing’s first yuan-settled LNG trade through the Shanghai Petroleum and Natural Gas Exchange.

Roughly 65,000 tons of LNG imported from the United Arab Emirates were exchanged in the trade.

This is not surprising, considering that China has been bolstering the yuan’s presence, Russia has confirmed widespread usage of the yuan, and President Xi Jinping told Saudi Arabia that his government would “make full use” of the Shanghai exchange to complete yuan settlements of energy trades.

This is a huge development in global financial markets.