In August, US President Trump announced new sanctions against Venezuela, including prohibiting American companies from trading new debts and securities issued by the Venezuelan government and the national oil company with payment dates exceeding 30 days and 90 days respectively, and prohibiting a series of existing debts owned by the Venezuelan state and the Venezuelan government from paying dividends.
In response to the new US sanctions, Venezuelan President Maduro also announced the use of currency baskets such as RMB, Euro and Japanese Yen in international payments, thus freeing the country from its dependence on the US dollar. Foreign media believe that this move is a positive sanction of the United States.
Last Friday, Venezuela's Ministry of Oil listed the oil prices denominated in RMB in September, including the oil prices denominated in US dollars in previous weeks and months. The Venezuelan government has ordered oil traders to stop accepting or start paying in dollars.
As the world's largest crude oil reserve country, Venezuela's move, regardless of its progress, is a blow to the dollar, even though the global oil market is still overwhelmingly trying to trade in dollars.
In the past two years, the total value of transactions in RMB between Qatar and China reached 86 billion US dollars, and an agreement was signed with China to encourage further economic cooperation.
Russia also began to accept RMB payment on 20 16, becoming China's largest crude oil partner, and has repeatedly surpassed Saudi Arabia to become China's largest crude oil importer. Just earlier this year, in response to President Trump's travel ban, Iran also gave up the dollar. The position of RMB in the international oil market is becoming more and more important.