Could the Yuan Replace the Dollar in Saudi Arabia’s Oil Sales to China? Probably Not, But it’s Possible, Says S&P

Jonathan Raa / NurPhoto via AFP

It wasn’t that long ago it would be inconceivable to suggest that Saudi Arabia would switch from the U.S. dollar to the Chinese yuan to settle oil transactions with Chinese buyers. While most analysts say that day is still a long way’s off, it’s not as far fetched an idea as many once thought.

The renminbi (RMB) is now the world’s third most-used currency in the SWIFT global currency messaging system, accounting for 5.3% of all settlements — not far behind the euro’s 5.9%. The U.S. dollar still dominates with a commanding 84% share of all settlements.

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by Eric Olander

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