China buying oil from Iran with yuan

China buying oil from Iran with yuan

China is buying crude oil from Iran using its currency the yuan, an Iranian diplomat has said.

Oil transactions are usually settled in dollars but US sanctions make it difficult for Iran to accept payments in the US currency

Meanwhile, China has been trying to promote usage of yuan as an international currency as a rival to the dollar, including the establishment of a new offshore trading centre in London alongside the existing centre in Hong Kong

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Related News Links:
af.reuters.com

Interesting news. I remember reading several threads here on ATS about the fate of other Countries that tried to trade oil with Currencies other than the US Dollar.

I wonder whats going to happen with this one?

I must admit, i've had a bad feeling for a while now that something is coming to head soon, involving China. The Chinese Activist news last week which involved the activist seeking shelter in the Chinese US Embassy was another hot coal on a very unstable fire.

Not to mention all the news there has been this year already about increased Naval activity in or near the South China Sea, and the US openly admitting they are stationing 10,000 troops in Northern Australia because of China.

Thoughts...


(visit the link for the full news article)

All I can say is.....

WE WERE WARNED!!!

Originally posted by Skewed
All I can say is.....

WE WERE WARNED!!!

who warned us?
about what?

reply to post by grantbeed


America will lose its Reserve Currency status before long. The end is near. All the United States has going for it right now is a strong military and the Reserve Currency status. America only keeps the Reserve Currency status because of its military. America cant pay its debt. People will stop buying Government Bonds soon. Hyperinflation is a matter of when,not if.


The BRICS Bank will be the new World Bank. The East will rule the world soon. All most famous celebrities will be hot Asians before too long. America will become a 'developing nation'.

China will overtake the US economy as the worlds largest within 5 years. America will really have no right to the Reserve Currency status by then. So America has 5 years at the most to fix things. I think America has alot less than 5 years though. And imagine an America with no Reserve Currency status. All America is is a bunch of parasites sucking all the money while producing nothing of real value,the rest of America works in the Services Industry serving these parasites coffe. America produces hardly anything other than fiat money and debt. What happens when the US dollar is valued at what its really worth?

China has been trying to promote the Yuan as a legitimate currancy outside of China for a while. I think it is recognised as legitimate in some ASEAN nations. However, I am sure Iran would prefer to bite its tongue and use the Dollar, Sterling or even the Euro, but the sanctions have put a nail through that particular preference (shame).

You should not overplay the Yuan, after all it is tied to the Dollar and highly undervalued making it something you don't want to rely on when the Chinese bubble bursts, as many punters predict will happen sooner rather than later.

Regards

reply to post by spoonbender


Here are three quick ones I went back to find. See if that gets you going.

India to pay gold for Iran oil, China may follow

The demise of the dollar

Iran presses ahead with dollar attack

Originally posted by grantbeed
China is buying crude oil from Iran using its currency the yuan, an Iranian diplomat has said.

China did declare economic war on the US a few years ago when it called for the dollar to be replaced.

The Guardian: China calls for end to dollar's reign as global reserve currency March 2009

Since then the US has engaged in heavy quantitative easing (essentially printing money) which has both caused high inflation in China and has reduced the real value of China's holding of US bonds.

The USA does still have a nominal GDP twice the size of China's Link so it could be argued that China has made the mistake of moving too soon.

A weakness of Chinese psychology is they want to be respected now, as a nation, for what they may become in the future.

What?

It was MONTHS ago that China announced they would be using the Yuan in billateral trade with Russia (?).

You know what would be really awesome? If China bought oil with some of those US Bonds they own.

Now that would be news and worthy of the US getting it's panties in a bunch. I would love to have Iranians owning US debt, oh the hillarity.

The idea of using your own currency other than the US dollar is gaining popularity in global markets, but only from a billateral perspective. If they start using another currency as the standard, then the US is going to have a huge problem.

Till then, this is just China using it's manipulated currency to it's advantage.

~Tenth

From February 2012 -

China should use its own currency to pay for oil imports from the Middle East, Central Asia and Russia to boost the yuan's global role and challenge the dollar's dominance, a top Chinese commercial bank executive said in comments published on Monday.

"If the yuan can be recognized by these oil producing countries and become one of the major oil pricing and settlement currencies along with rouble and others, it can greatly enhance the yuan's status," Cao Tong, senior vice president at CITIC Bank

Cao's view, while not necessarily representing Beijing's official stance, is indicative of China's desire to unseat the greenback as the pre-eminent currency in the global monetary system

Looks like they were serious with the above statements after all. Wonder if this will guarantee an attack on Iran, and if so, what will China's response be?

www.reuters.com...

It all goes to the US stranglehold on the middle east with the petrodollar:

The next great war will be with China and that is not a warmonger or fearmonger it is stating the obvious with its over 1.5 billion people to feed and provide jobs the resources in this world just are not there.

First step in that direction will be the Us losing its reserve status i put that happening within the next 10 years China buying oil from Iran is just securing the energy supplies needed for the end game.

Well yuan do ya know? Iraq tried to trade in Euro's and look what happened.

reply to post by CALGARIAN


The US cannot mess with the unity of Iran-China-Russia, Individually yes, but not as a whole.

Originally posted by Germanicus
America produces hardly anything other than fiat money and debt.

That isn't true. Based on 2009 figures the West is still very dominant.

Percentage of Global GDP (nominal)

EU - 28.4%
USA - 24.4%
China - 8.7%
Japan - 8.7%

Percentage of World Manufacturing (nominal)

EU -24.2%
USA - 18%
China - 14%
Japan - 6.4%

Military spending ($ Bn)

USA 698
EU 194
China 119
Japan 54

Of course the Chinese get more bang for their buck with military spending due to cheaper labour and Chinese military spending is almost certainly under estimated.

But still, to talk about the demise of the US or the West in general is a little premature.

Old story. China has been pushing for some time to have the Yuan as the world's reserve currency.

It's more stable than the US dollar.

reply to post by ollncasino

But still, to talk about the demise of the US or the West in general is a little premature.

Is it really?

Looking at the Europe we have today, I would have a hard time defending that statement. And personally, the only reason why the U.S. is still able to float, is due to their investments across the globe.

China buying oil from Iran with yuan

China would like nothing more than to tweak the west's nose when it comes to Iran. Russia, though, has led the way and in another time with better leadership, they would be held responsible for supplying Iran with arms, nuclear technology as well as fuel.

Currency really doesn't make that much difference. Iran has thumped for years about selling its oil for something other than US Dollars... based on the notion that less that kind of deal, it could hurt the US economically. But since about 2007, the US has been gradually withdrawing itself from the center of the oil trade wars and other currencies, mainly the Euro, have come and to gradually strike a balance. The only real purpose the US Dollar serves now is in the book keeping... as every transaction is converted so all the numbers add up.

Nope... the Chinese currency doesn't mean as much as does the sum of the purchase. The US has been pushing India to refrain from buying Iranian oil... but it knows that China cannot be swayed. This brings us back full circle to how red China can tweak the nose of the west by simply buying Iranian oil directly...

And what happens when the yuan crashes? The Chinese economy has been in a downward spiral as well....

Originally posted by Tifozi
Is it really?

Looking at the Europe we have today, I would have a hard time defending that statement. And personally, the only reason why the U.S. is still able to float, is due to their investments across the globe.

It is all relative. China is suffering the effects of the inflation the US has successfully exported to it due to the fact that most Chinese imports are priced in US dollars.

Think about it. When the US and the EU are in recession and 50% of Chinese exports go to those areas and reports on the ground in China speak of extremely high inflation rates, how credible are Chinese claims to still have an economy that is surging ahead?

Wikileaks: Top Chinese official doesn't believe Chinese GDP figures

China's economic figures are unreliable and not to be trusted, according to Li Keqiang, one of the country's most senior officials.

A diplomatic cable leaked by Wikileaks, the whistle-blowing website, reveals that Mr Li described China's gross domestic product figure as "man-made" and "therefore unreliable"

Chinese officials have repeatedly been found to have artificially inflated their local GDP figures in order to win face and hit their targets.