Big customers start buying Russian oil with RMB: A big blow to the USD, China waits for good news

Reuters news agency recently reported that Indian refineries have begun to pay for orders for Russian oil imports in Chinese yuan.

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India buys Russian oil with Chinese currency

" Some refineries will pay in other currencies like RMB if banks are not willing to pay the transaction in USD ," an Indian government source revealed.
In June, Indian Oil Corp, Russia's largest crude oil customer, became the first state-owned refinery to settle some of its transactions with Moscow in yuan.
Reportedly, at least two of India's three private refineries are also paying for some Russian imports in renminbi.
It is not immediately possible to determine the amount of Russian oil that India has purchased in renminbi, although it has paid in Chinese currency for many shipments.
China has also now switched to using its own currency in most of its energy trade with Russia. In addition, last month, Pakistan also traded with Moscow in Chinese currency.
The dollar has long been the main global oil currency, but now the renminbi is playing an increasingly important role in Russia's financial system as Moscow has been temporarily excluded from the dollar financial network. and the euro by sanctions from the West.

The renminbi is chosen by many countries to pay instead of USD in transactions with Russia. Photo: AFP

Positive signal for Beijing

The increased adoption of renminbi payments is good news for China, which is actively promoting its role in cross-border trade agreements, as well as in a gradual effort to replace the US dollar.
Sharing with the Global Times, the director of the Center for Digital Economy and Financial Innovation Research under the International Business School of Zhejiang University Pan Helin, said the move will strengthen its influence. internationalization of the renminbi and increase its market share in global circulation and payments, and facilitate internationalization.
Dong Dengxin, director of the Institute of Finance and Securities at Wuhan University of Science and Technology, added that this status quo will accelerate the de-dollarization process in China, India and Russia.
" It will further accelerate the use of the renminbi in international trade. As India and Russia are both BRICS members, their use of the renminbi in payments will also inspire many Emerging economies and developing countries follow this path ," Dong said.
The BRICS countries are stepping up efforts to replace the use of the dollar in international trade. The group will likely discuss the feasibility of a common currency at a summit in South Africa later this year.
According to the Association of Global Interbank Financial Telecommunication, the global share of the renminbi rose from 2.29% in April to 2.54% in May and the renminbi remains the strong currency. Thursday.

For a long time, China has always expected the renminbi to be comparable to the four major currencies of the world: the US dollar, the Japanese yen, the British pound, and the euro, becoming the mainstay of the right to draw capital. Special Drawing Rights (SDRs) .

SDRs are an interest-bearing international reserve asset used by the International Monetary Fund (IMF), as a unit of account by the IMF and several other international organizations.

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