NEW YORK, April 14. /TASS/. Military actions in the Middle East have triggered a sharp rise in oil payments in yuan, leading to the petroyuan starting to be re-actualized as an alternative to the petrodollar, Bloomberg reported.
Iran has begun accepting yuan as payment for transit of vessels through the Strait of Hormuz, the agency noted. Moreover, China’s Cross-border Interbank Payment System (CIPS) recently registered a record transaction volume in a single day totaling 1.22 trillion yuan ($179 bln), which marks the first time the volume exceeded 1 trillion yuan.
Chinese officials are constantly working to strengthen economic ties with Middle Eastern oil-exporting countries, Bloomberg said. Chinese authorities are developing oil trading infrastructure in Shanghai, having expanded the reach of the CIPS, and are currently exploring the possibility of creating an international digital currency platform with the participation of Middle Eastern partners.
According to analysts interviewed by the agency, the US and Israeli war against Iran, as well as the growing number of contradictions between Washington and its traditional allies, are negatively affecting the dollar's attractiveness and will have a long-term effect, increasing the interest in finding an alternative currency.