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In an unprecedented move, the digital version of China’s currency, the e-CNY, has facilitated a landmark crude oil deal, emphasizing its growing prominence in international trade. A Pioneering Transaction in Crude Oil PetroChina International Corp Ltd solidified its place in history by procuring 1 million barrels of crude oil using the digital renminbi (e-CNY). This transaction, which occurred at the Shanghai Petroleum and Natural Gas Exchange (SHPGX), marks a paradigm shift in the domain of international crude oil trade. While the SHPGX was transparent about the deal’s existence, it refrained from revealing the monetary worth or the seller’s identity. Advancing e-CNY in Cross-border Trade The SHPGX expressed that this groundbreaking deal aligns with the Shanghai municipal government’s directive to incorporate the e-CNY in international trade. Through their official platform, the SHPGX emphasized its commitment to optimizing trading channels for both domestic and international market players. This enhancement is expected to simplify international capital’s access to the burgeoning Chinese market. Ming Ming, CITIC Securities’ Chief Economist, echoed this sentiment. He highlighted the potential of e-CNY in bolstering the global presence of the Chinese currency and cross-border settlements. Momentum in Energy Sector Settlements This landmark transaction with e-CNY came hot on the heels of another significant deal: a yuan-settled liquefied natural gas trade. Facilitated by the SHPGX, this deal saw the China National Offshore Oil Corp team up with France’s Engie. As part of this agreement, Engie will be shipping 65,000 metric tons of LNG to CNOOC come November. This isn’t a first for China, as a prior yuan-based LNG purchase was made with France’s TotalEnergies. RMB’s Growing Global Footprint Recent data from the Society for Worldwide Interbank Financial Telecommunication painted a promising picture for the RMB. As of September, it held its rank as the fifth most active global currency, boasting…

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Filed under: News - @ October 23, 2023 8:20 pm