Save Our Pak
Beijing: Iran and China have taken steps to challenge the global dominance of the US dollar at the Strait of Hormuz. Both countries are now actively promoting the Chinese currency, the yuan, in international trade.
According to Al Jazeera, the ongoing tensions involving the US and Israel have created instability in the global economy. This situation has opened an opportunity for countries like Iran and China to push for alternative financial systems. Currently, around 80% of global oil trade is conducted in US dollars.
Reports suggest that Iran is using the Strait of Hormuz as a key point to promote the yuan. There are claims that commercial ships are being charged fees in yuan instead of dollars while passing through this important route.
Al Jazeera further reported that Iran is encouraging the idea of “petro-yuan” in global markets. Under a temporary ceasefire arrangement, Iran has also assured safe passage through the Strait for two weeks.
Experts believe that Iran is turning towards the yuan mainly to avoid US sanctions. Despite the ongoing conflict, Iran managed to export between 12 to 13.7 million barrels of oil within two weeks.
It is important to note that Xi Jinping has already expressed his goal of making the yuan a global reserve currency in the future.
Reported by Save Our Pak
