China and France have successfully completed the first cross-border yuan settlement for liquefied natural gas (LNG) trade, a milestone that could boost the use of the Chinese currency in the global market.
The transaction was facilitated by TotalEnergies, a French energy company, and the China National Offshore Oil Corporation, a Chinese state-owned enterprise. The transaction was completed using the Shanghai Petroleum and Natural Gas Exchange, a state-backed energy trading platform. About 65,000 tonnes of LNG originating from the UAE changed hands in the transaction TotalEnergies unveiled, stopping short of commenting on the value of the deal.
The use of the yuan in cross-border settlements could increase the currency’s internationalization and reduce China’s reliance on the US dollar. Additionally, it could provide a more convenient and cost-effective payment method for Chinese companies conducting international transactions, as well as loosen the greenback’s dominance in world trade.
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Your PM, Mr Trudeau, when asked at a women’s business meeting what country do you most admire: He answered China. After crushing the trucker protests in Ottawa over a year ago, Beijing must be very proud of him.