Experts and Analysts Not Terribly Concerned About the Prospect of China Using Yuan to Buy Saudi Oil

News that Chinese and Saudi Arabian officials are negotiating to use yuan instead of dollars to purchase oil sparked a surprisingly low-key reaction among political observers and market watchers. “While there has been some hyperventilating, the reaction is generally much less excited than it would have been,” said Peking University Finance Professor Michael Pettis in a five part Twitter thread.

Financial analysts were even more underwhelmed given the comparatively limited use of Chinese yuan around the world compared to the dollar, and the fact that the Chinese currency remains non-convertible and will likely stay that way for the foreseeable future. In essence, at least according to the analysts surveyed by Bloomberg, few saw this as a meaningful challenge to the dollar’s reign as the dominant global currency:

  • Get a daily email packed with the latest China-Africa news and analysis.
  • Read exclusive insights on the key trends shaping China-Africa relations.
  • Full access to the News Feed that provides daily updates on Chinese engagement in Africa and throughout the Global South.

China, Africa and the Global South... find out what’s happening.

Subscribe today for unlimited access.

What is The China-Global South Project?

Independent

The China-Global South Project is passionately independent, non-partisan and does not advocate for any country, company or culture.

News

A carefully curated selection of the day’s most important China-Global South stories. Updated 24 hours a day by human editors. No bots, no algorithms.

Analysis

Diverse, often unconventional insights from scholars, analysts, journalists and a variety of stakeholders in the China-Global South discourse.

Networking

A unique professional network of China-Africa scholars, analysts, journalists and other practioners from around the world.