User:Tomipelegrin/Petroyuan

Petroyuan is a form of the official chinese currency, the yuan intended at least initially for oil trading anounced by the chinese government in September 2017 This project of a currency is also supported by China's commercial allies, such as Russia so it can be implented as petrocurrency This proyect is so they can take over the american petrodollar as a main currency in crude oil transactions, whose hegemony, has leaded the market since the dollar standard was first established in 1971, replacing the gold standard and giving the us the power to manage the currency supply. On March 26, 2018 the chinese government issued the first long term oil trading contracts denominated in petroyuans

History
Since 1971, when President Richard Nixon ended the dollar covertibility An example of a petrocurrency backed by gold, was projected by the libian dictator Muamar el Gadafi, who released a project to create a multinational african currency,  However, this project remains static because, he was murdered in the Civil war of Lybia in October 2011

China, with a currency constantly growing on market relevance, attempted to create a dollar alternative on June 2017, When the people's bank of China and the Central Bank of Russia signed a memorándum to facilitate the exchange of crude oil using yuans. Months Later, in september 2017, China officialized the existence of the petroyuan.

The operation was given on a context where China domained the crude oil importations, with aproximately 400 million tons in 2017 as stated by Sinopec, one of Chinese biggest oil companies

Characteristics
One of the reasons the Petroyuan was created, was that Russia, Venezuela o Irán may be able to avoid United States sanctions, so nations such as Saudi Arabia, one of the main oil producers and extrators could avoid dollar hegemony and Us pressions. One the Yuan's main problems are its volatile liquidity and short scale extension, However the Chinese government intervened increasing its gold reserves to back the Petroyuan.