Using China’s currency as a benchmark for oil pricing may deprive the dollar of the global dominance

Almaty. October 24. Silkroadnews - Using China’s currency as a benchmark for oil pricing may deprive the dollar of the global dominance, CNBC reports.
“China is looking to make a major move against the dollar’s global dominance, and it may come as early as this year. The new strategy is to enlist the energy markets’ help: Beijing may introduce a new way to price oil in coming months — but unlike the contracts based on the U.S. dollar that currently dominate global markets, this benchmark would use China's own currency. If there’s widespread adoption, as the Chinese hope, then that will mark a step toward challenging the greenback's status as the world’s most powerful currency,” the report reads.
It is noted that China is the largest importer of oil in the world, therefore, Beijing considers it logical that the most important commodity of the world economy should be valued in yuan. In addition, the departure from the dollar is a strategic priority for countries such as China and Russia. Both countries are aimed at ultimately reducing dependence on the US dollar, limiting their exposure to US currency risk and American sanctions policies.
The plan, reportedly, is to fix the price of oil in yuan using a gold-backed futures contract in Shanghai.
According to the television channel, too much state control, skeptical attitude at the global oil markets, as well as the fact that the yuan is not yet fully convertible, could serve as an obstacle in the path of China’s ambitions.
It is noted that China is likely to approach its main crude oil suppliers in the Middle East, Russia and Asia, some of who already accept the yuan as payment. Iraq and Indonesia have also joined in non-dollar trades.