Follow CGSP on Social Media

Listen to the CGSP Podcast

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:

Lead the Conversation on China

Subscribe Today to Get Full Access to The China-Global South Project

Check Out Everything You'll Get With Your Subscription

The China-Global South Daily Brief delivered to your inbox at 6AM Washington time

Full access to exclusive news and analysis from editors based in the Global South

Transcripts of CGSP’s twice-weekly podcasts

Students and teachers with a valid .edu email address are eligible for a 50% discount off monthly or yearly subscriptions. Email us to receive a discount code.

What is The China-Global South Project?


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


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.


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


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