- On Friday, China's President Xi Jinping pushed for the settlement of energy trades in the yuan.
- At a summit with Arab leaders, Xi said China would continue importing large amounts of oil.
- Settling more trade in the yuan could weaken the US dollar's global dominance in the long run
According to Market Insider article published on December 12, 2022, at a summit with Arab leaders on Friday, China's President Xi Jinping pushed for the settlement of energy trades in the Chinese yuan — a move that could weaken the US dollar's global dominance in the long run.
At the summit, Xi said China will continue to import large quantities of oil and gas from Gulf states and conduct its settlement in the Chinese yuan, or RMB, according to a statement from China's foreign ministry. Most of the world's trade is now denominated in the US dollar.
"The Shanghai Petroleum and Natural Gas Exchange platform will be fully utilized for RMB settlement in oil and gas trade," Xi said, according to a transcript of his speech published by the government-owned China Daily. He did not specify when the change would go into effect.
It's not clear if any of the Gulf nations are taking up the proposal, but Saudi Arabia — the world's top oil exporter — has been in talks to use the yuan to settle its energy sales to major consumer China.
