{"id":27361,"date":"2017-10-28T08:32:41","date_gmt":"2017-10-28T13:32:41","guid":{"rendered":"http:\/\/olduvai.ca\/?p=27361"},"modified":"2017-10-28T08:32:41","modified_gmt":"2017-10-28T13:32:41","slug":"the-worlds-new-reserve-currency-everything-you-need-to-know-about-petroyuan","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=27361","title":{"rendered":"The World&#8217;s New Reserve Currency? Everything You Need To Know About PetroYuan"},"content":{"rendered":"<h3 class=\"title\"><a href=\"http:\/\/www.zerohedge.com\/news\/2017-10-26\/everything-you-wanted-know-about-petroyuan-were-afraid-ask\">The World&#8217;s New Reserve Currency? Everything You Need To Know About PetroYuan<\/a><\/h3>\n<section class=\"node node-type-story node-full node-nid-606094\">\n<div class=\"content\">\n<p><a href=\"http:\/\/www.zerohedge.com\/news\/2017-10-24\/its-huge-story-china-launching-petroyuan-two-months\">Earlier this week,<\/a> we pointed out that the &#8216;PetroYuan&#8217; is on the verge of becoming reality with Graticule&#8217;s Adam Levinson noting that <strong>the birth of a yuan-denominated oil contract will be a \u201chuge story\u201d in the fourth quarter, and will be a \u201cwake up call\u201d for investors who haven\u2019t paid attention to the plans<\/strong>.<\/p>\n<p>As a reminder,<a href=\"http:\/\/www.zerohedge.com\/news\/2014-01-29\/nothing-lasts-forever-world-bank-chief-economist-calls-end-dollar-reserve-currency\"><strong> nothing lasts forever&#8230;<\/strong><\/a><\/p>\n<p><a href=\"http:\/\/www.zerohedge.com\/sites\/default\/files\/images\/user3303\/imageroot\/2012\/01\/20120103_JPM_reserve.png\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/www.zerohedge.com\/sites\/default\/files\/images\/user3303\/imageroot\/2012\/01\/20120103_JPM_reserve_0.png\" width=\"500\" height=\"423\" \/><\/a><\/p>\n<p>Judging by the interest in the topic, investors are less informed than many believed and so the different teams within <strong>Soci\u00e9t\u00e9 G\u00e9n\u00e9rale Cross Asset Research examine what this contract would mean for the global oil markets and for the internationalisation of the yuan &#8211; if it gets off the ground.<\/strong><\/p>\n<p><u><strong>Part 1 The proposed yuan-denominated crude oil futures contract<\/strong><\/u><\/p>\n<ul>\n<li>Why is a yuan-denominated Chinese crude futures contract interesting to think about?\u00a0 Why is it potentially significant?<\/li>\n<li>Would yuan-denominated Chinese crude futures affect the physical markets?<\/li>\n<li>Has China actually proposed changing its crude buying from USD to yuan?<\/li>\n<li>What about the crude producers and exporters?<\/li>\n<li>How much non-USD crude trade currently exists?<\/li>\n<li>If small volumes don\u2019t change how the oil market operates, how big would the volumes have to be to make a difference?<\/li>\n<li>Is there another commodity that trades in multiple currencies at different exchanges that we can learn lessons from?<\/li>\n<\/ul>\n<p><u><strong>Part 2 Another step towards currency internationalisation?<\/strong><\/u><\/p>\n<ul>\n<li>Why does China want to introduce a yuan-denominated crude oil futures contract?<\/li>\n<li>How can the yuan succeed in becoming a reserve currency?<\/li>\n<li>What does the status of an international currency mean for the yuan?<\/li>\n<li>What will an internationalised yuan mean to China\u2019s FX reserves?<\/li>\n<\/ul>\n<p>*\u00a0 *\u00a0 *<\/p>\n<p><strong><u>Part 1: The proposed yuan-denominated crude oil futures contract<\/u><\/strong><\/p>\n<p>&#8230;click on the above link to read the rest of the article&#8230;<\/p>\n<p>We begin with the oil markets.<\/p>\n<\/div>\n<\/section>\n","protected":false},"excerpt":{"rendered":"<p>The World&#8217;s New Reserve Currency? Everything You Need To Know About PetroYuan Earlier this week, we pointed out that the &#8216;PetroYuan&#8217; is on the verge of becoming reality with Graticule&#8217;s Adam Levinson noting that the birth of a yuan-denominated oil contract will be a \u201chuge story\u201d in the fourth quarter, and will be a \u201cwake [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[130,184,6466,679,839,4318],"class_list":["post-27361","post","type-post","status-publish","format-standard","hentry","category-economics","tag-china","tag-crude-oil","tag-petroyuan","tag-reserve-currency","tag-us-dollar","tag-zerohedge"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/27361","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=27361"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/27361\/revisions"}],"predecessor-version":[{"id":27362,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/27361\/revisions\/27362"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=27361"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=27361"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=27361"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}