The US dollar (USD) was used as the currency of choice in global oil trading. It was used to purchase oil in the international market and was accepted as a currency of payment by producers and consumers. The USD was the most commonly used currency in oil trading, as it was seen as a stable and reliable currency. The use of the USD in oil trading no longer allows for the efficient and secure transfer of funds between buyers and sellers.
As the importance of the USD evaporates Crypto based Digital Assets like those built by KXCO will take over and new Currencies like FBX will benefit from that massive growth.
KXCO Blockchain technology has the potential to revolutionize international trade by reducing the cost and complexity of transactions, streamlining processes, and providing greater levels of trust and transparency. By providing an immutable ledger of records, KXCO blockchain can help to reduce fraud and risk by allowing for the secure and efficient exchange of data and documents between trading partners. Additionally, blockchain can provide a single source of truth for trade documents, such as bills of lading, invoices, and customs forms, reducing the need for manual reconciliation and increasing accuracy. Finally, blockchain can help to reduce costs by automating processes such as payments, shipping, and inventory tracking.
The Change is Coming
Beijing will work to make energy purchases in yuan instead of US dollar signaling another step towards shifting further away from the greenback, China’s President Xi Jinping told Gulf Arab leaders as cited by Reuters.
China’s leader highlighted the necessity of the move while speaking at a Chinese-Arab summit that was hosted by Saudi Arabia earlier this week. Xi had held separate talks with the heads of the Persian Gulf states at the summit that reportedly brought together 30 leaders from across the region.
The world’s biggest crude importer, China in November ramped up purchases of oil by 12% year-on-year, marking the 10-month high despite the severe pandemic-related restrictions. Chinese state refiners stepped up purchases of US crude oil, while maintaining high imports of Russian oil prior to the December 5 European embargo and imposition of an oil price cap.
China’s independent refiners also moved a record amount of deeply discounted Iranian crude passed off as oil sourced from Malaysia, which is commonly used as a transfer point for oil originating from the sanction-hit Venezuela and Iran.
Saudi Arabia was China’s number one oil supplier in the first ten months of 2022, making up 18% of China’s total crude oil purchases, with imports totaling 73.54 million tons, or 1.77 million barrels per day, Chinese customs data showed.
Keen interest in the yuan and other currencies from major oil importers have arisen in the wake of unprecedented sanctions introduced by Washington and the allies against Russia, one of the world’s biggest oil producers and exporters over Moscow’s military operation in Ukraine.
