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China will take measures this year to pay for imported crude oil in RMB

Beijing Reuters reported on the 29th, three informed sources said that China is paying RMB to replace the dollar to pay for crude oil imports and launched a preliminary push. This is a key development for the Chinese authorities in promoting the internationalization of the renminbi.

Two of the sources said that the renminbi payment pilot program may be launched soonest in the second half of this year.

The sources of the three financial institutions said that China’s supervisory authorities have informally required a number of financial institutions to prepare for renminbi pricing for China’s crude oil import pricing business. “As the largest oil buyer, it is only natural for China to promote the use of renminbi for payment settlement. This will also improve the renminbi liquidity of the global market,” said one source.

One of them said that according to the plans currently discussed, China may start importing crude oil from Russia and Angola. Both countries, like China, hope to break the global dominance of the dollar. Russia and Angola are China's major sources of crude oil supply.

If successful, this may lead to the transfer of other commodities to RMB, including metals and mining materials. All three said that the plan is still in its initial stage. Several Chinese state-owned oil company executives said they have not heard of similar plans.