What is the petroyuan?
The petroyuan is based on the concept of the petrodollar, where crude oil exports are denominated in US dollars. For many decades, the US dollar has been the prime currency for global oil transactions. For clarity, “petrodollars” and the “petroyuan” are not considered currencies themselves, rather dollars or yuan used to trade oil. Introduced in 2018, the petroyuan is China’s attempt to usurp the dominance of the US dollar in global crude oil trade. The petroyuan has gained traction in recent years, with Putin naming the Chinese yuan as his favoured currency to conduct trade in, during Xi Jinping’s state visit in March 2023.
