To be fair i go over to the Le Meridien even if its for a few hours. I dont mind Dubai actually. It was always a stopover before flying off to some sandpit type place!
Mine have always been stop overs for a few hours...the twice I've been outside the airport were to the Intercontinental Marina for some BS conferences and being paid by work.To be fair i go over to the Le Meridien even if its for a few hours. I dont mind Dubai actually. It was always a stopover before flying off to some sandpit type place!
Since talks were last held, China has signed a multi-decade oil-supply deal with Iran and will pay for the crude in yuan, bypassing the established petrodollar system.
It won’t be ‘freedomed’ with a reported 5,000 Chinese ‘security personnel’ aka troops. It’s a ‘good’ way to get round the sanctions on Iranian oil. $280Bn of investment on oil facilities and $120Bn on transport will no doubt tie Iran into China more and more.Hmm wonder if Iran will be getting "freedom'ed" soon?
China’s imports from Russia last year rose to 71.49 million tons, up from 59.7 million tons in 2017, reflecting a nearly 20 percent increase. This means that in 2018 Russia exported 1.43 million barrels per day (bpd) to its far eastern neighbor.
The International Energy Agency’s 2017 World Energy Outlook had forecasted that China’s oil import dependence will reach 13 million barrels per day by 2040, and that it will overtake the United States as the largest oil consumer by 2030.
I can't access the Telegraph article, but China has been working on getting the yuan used as a global trading currency for some years now. This latest development has likely been in the works for quite some time now.That's huge news. It is pretty much the biggest single sign I can call to mind of the accrual by the Chinese of significant political/diplomatic and military clout. And the impact on Iran, Syria, possibly Qatar, of having a major, non - Western, sponsor. The shift of influence of external powers in the ME is amazing (as in 'incredible'. Not amazing meaning 'good').
One of the reasons why China set up the AIIB as a means to slowly reduce the dependency on USD...I can't access the Telegraph article, but China has been working on getting the yuan used as a global trading currency for some years now. This latest development has likely been in the works for quite some time now.
You can also do direct trade between Canada and China in yuan without going through a third currency (e.g. US dollar) and there are direct payment systems set up. This means that an exporter in Canada can sell something, say oil, to China, accept payment directly in yuan, and then exchange the yuan for Canadian dollars in Canada. The main advantage of this is that it avoids the transaction fees involved in going through a third currency, plus any additional exchange rate risks that a third currency introduces as well.
I think the UK is also set up for offshore yuan trading, although I don't know if that is just for currency trading or if payments systems are set up for trade in goods as well. When this was announced a while ago it was seen as a big win for helping cement London's position as a financial centre. The UK is committed to promoting the yuan as an international currency as this benefits London as a financial centre which deals in it.
Last year China launched yuan denominated oil futures trading in Shanghai. These yuan contracts have overtaken dollar contracts in Singapore and Dubai, although are not as big as Brent (London) or West Texas Intermediate (New York). None the less, the big international commodity traders take it seriously and are involved in a big way.
China’s yuan-denominated oil futures are being taken seriously by traders, suggesting they can help promote internationalistion of the renminbi to challenge the hegemony of the US dollar in world trade.www.scmp.com
Other commodities are also trading in yuan and Canadian provincial governments are floating yuan bonds on the Chinese market.
It's not surprising that Iran is trading directly in yuan. The only surprise is that it took them so long to start doing it. As mentioned above, there are already yuan denominated oil contracts being traded in Dubai. Iran is behind the curve in this respect.
Does the above not render existing sanctions against Iran useless ?It won’t be ‘freedomed’ with a reported 5,000 Chinese ‘security personnel’ aka troops. It’s a ‘good’ way to get round the sanctions on Iranian oil. $280Bn of investment on oil facilities and $120Bn on transport will no doubt tie Iran into China more and more.
Interesting times .......
Under a 25-year deal that was agreed in August, China will buy oil, gas and petrochemicals from Iran at a discount of about 12pc. In return for a cheap, guaranteed oil supply, China will inject a staggering $280bn (£224bn) in Iran’s investment-starved oil industry, which has been hit hard by US sanctions and has serious infrastructure issues.
China has allocated a further $120bn to shore up the country’s transport infrastructure and will also deploy up to 5,000 Chinese security personnel in the country to protect its assets, as well as guarding shipments of oil on tankers between Iran and the Chinese mainland.
Significantly, payment for the crude will be in yuan. This will allow China to bypass the dollar denominated international financial system. Iran has been trying to get countries to pay for its oil in currencies other than the dollar for many years, so Beijing must know this move will be controversial in Washington – and that’s why it has taken some time for details of the deal to leak out.
Personally no. The US ones include bank transfers etc.Does the above not render existing sanctions against Iran useless ?
I very much doubt that will happen, we’re in too deep with buying their products, components and sub components. It’s the PRC flexing their muscles and it was only a question of time:Time to stop importing Chinese goods for a while. Turn a few container ships around possibly.
Doesn't make sense to continue buying their goods while they are doing this.
Prepared to deploy a further two Patriot batteries and a THAAD battery:The Pentagon said on Thursday it plans to send four radar systems, a battery of Patriot missiles and about 200 support personnel to bolster Saudi Arabia’s defences after the largest-ever attack on the kingdom’s oil facilities this month.
In a statement, the U.S. military said it was putting additional capabilities on “prepare to deploy orders,” meaning they could be mobilized more quickly in a crisis. Those include two additional Patriot missile batteries, made by Raytheon Co (RTN.N) and the Lockheed Martin Corp-built (LMT.N), Terminal High Altitude Area Defense system, or THAAD.
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