According to official reports, the yuan has overtaken the dollar to become the most-used currency in China's cross-border transactions, with it being used in 48.4% of all such transactions.
Xi Jinping calls for oil trade in Yuan. The Chinese leader declared that his visit marked the beginning of a new era in relations.
On September 12, Russian President Vladimir Putin stated that, given mounting economic sanctions, full “de-dollarization” of the Russian economy is only a matter of time (RBC, September 12). Putins remark was preceded by a statement from Russian Deputy Finance Minister Alexey Moiseev, who argued that “Russia no longer needs the US dollar as a reserve currency.”
UltraTech Cement India's largest cement maker is circumventing the US dollar using Yuan for a Russian coal deal, challenging the dominance of the U.S. dollar in global trade.
Thus far, the most severe consequence of Russia's military operation has been the exclusion of Russian banks from the global financial system. But the tide seems to be turning with petrodollar's status threatened as first shipment of Russian coal paid in Yuan is on its way to China.
Despite exempting several sectors from sanctions, the US is warning India that increased trade with Moscow will result in grave repercussions. Yet, Indian firms have begun the process to accept China's yuan for their exports.
According to geopolitical researcher Brian Berletic, US Treasury Secretary Janet Yellen recently declared that the dollar has no major rivals in the globe, but that assertion could be "wishful thinking" on Washington's behalf. On the contrary, US sanctions on Russia could speed up dedollarisation and help the rise of Yuan.
The dynamic between the US and Saudi Arabia seems to be dramatically changing. The petrodollar is showing cracks in what seemed to be an impregnable fortress as Saudi Arabia is now considering accepting the Yuan for Chinese oil sales instead of the dollar.