Increase the integration of RMB and oil trade, and vigorously promote the process of petroleum currency contract and petroleum RMB. At present, oil-producing countries in the Gulf region, such as Russia and Iran, are seeking non-dollarization in their oil transactions with other countries. However, China, whose currency is not freely convertible, can only bear the double pressure of increasing oil cost and RMB appreciation.

2. Establish a strategic reserve.

The key to break the imbalance of international petroleum finance is that China must strive for the initiative and form a force to compete with the US-led petroleum financial system. Its foothold is to ensure oil security with financial security, to build a "petroleum and financial integration" system in China, to realize the integration of industrial capital and financial capital, and to create a new strategic advantage for China.

China has transformed its huge foreign exchange reserves into physical resources reserves by purchasing oil and other energy resources or establishing strategic reserves.

Foreign exchange reserves and energy reserves can be considered together. Simple currency reserves can be combined with more flexible petroleum financial products, that is, petroleum financial contracts, such as oil futures contracts and oil bond contracts, and can also be regarded as a new type of reserve currency, which can not only convert excessive foreign exchange reserves into physical resources, but also have a more say in the financial market.

Extended data:

Difficulties in implementation:

1, lack of joint consultation mechanism.

China lacks a joint negotiation mechanism. Foreign joint negotiation mechanism has not been established in the fields of oil, steel and iron ore. Because of this, China has repeatedly suffered from the loss of voice in similar international markets.

For example, Nippon Steel of Japan tore up the "gentleman's agreement" reached by Chinese, Japanese and Korean steel enterprises and took the lead in reaching an iron ore price agreement with Rio Tinto. South Korea's Posco also accepted the contract price reached by Japan and Australia, which just exposed this point. Of course, the market mechanism of crude oil is different from other fields, which determines that oil negotiations are not only difficult, but also require super wisdom.

2. RMB is freely convertible.

At present, RMB is not freely convertible, and foreign exchange control and other financial policies are doomed to make it difficult for China to have the right to speak in the field of international oil prices, let alone the right to set international oil prices. The absence of joint negotiation mechanism and the non-opening of RMB and foreign exchange policies are really important factors that restrict China's competition for international oil pricing power.

References:

Baidu encyclopedia-international oil price pricing power