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Page added on January 31, 2012
China and UAE ditch US Dollar, will use Yuan for oil trade
The US dollar is fast losing out its reserve currency status with China aggressively replacing the dollar with the Yuan as a currency for bi-lateral trade. The latest is an agreement signed between the China and the United Arab Emirates (UAE), which will use the Yuan for oil trade.
The deal is worth around $5.5 billion dollars and the Chinese central bank said that the deal aims at “strengthening bilateral financial cooperation, promoting trade and investments and jointly safeguarding regional financial stability”
Earlier, Russia and Iran had decided to use Rubles as a means of currency. With both China and Russia converting their bi-lateral trades into non-US dollar deals, the greenback is now under threat of losing out its status as the world reserve currency. And the impact of such a transition will essentially tip the balance of global power.
7 Comments on "China and UAE ditch US Dollar, will use Yuan for oil trade"
DC on Tue, 31st Jan 2012 6:31 pm
Does this mean the UAE will be accused of devoloping WoMD in the near future too?
Shaved Monkey on Tue, 31st Jan 2012 10:16 pm
“Democracy” might be coming to UAE soon.
armageddon51 on Wed, 1st Feb 2012 2:16 am
Finally, they are coming to their sense. Why on earth do you need to convert your trading money into a third intermediate currency which has nothing to do with the parties involved ? Time to ditch the bankrupted US currency and give them a lesson in humility.
BillT on Wed, 1st Feb 2012 4:36 am
Arma…you are correct and every exchange puts money into some banker’s pocket. Citi charges me 3% to pay my ATM withdrawals in Philippine Pesos from my US dollar account. I don’t mind the fee as it makes my living here easier, but it is an expense that adds up. I worry about the day when the dollar finally fails and I have to find another way. I am putting as much as possible in a Peso account here for when that happens. And in silver.
MrEnergyCzar on Wed, 1st Feb 2012 5:02 am
This embargo may crush the dollar and force the creation of an alternate oil currency….
MrEnergyCzar
NicoJ on Tue, 7th Feb 2012 10:45 am
This will break the US economy beyond repair. They sit with $16trn debt. does anybody here think they will survive such a blow?
mushe tushe on Tue, 7th Feb 2012 7:49 pm
It is simple. Contrary to common knowledge, The Federal Reserve is a corporation and can claim chapter 11 anytime it wishes. China would lose the most since she is largest foreign USD holder.