The American Dollar has long been the backbone of International Trades. Thus giving US unlimited power and value. The value of Dollar can be experienced by even looking at your laptop keyboard, the only Currency that exists as a laptop button is the $.
The cause of this attempt at De-Dollarisation by China is a result of its growing economic power and the need to import more and more oil to support its mammoth industry. Recently China became the largest Oil importing surpassing USA. China now imports 8.4 Million Barrels per Day as compared to America's 7.9 Million Barrels per day.
Petro Yuan adoption by China and other countries is likely to withdraw 600$ to 800$ billion worth of transactions. Which could lead to a major correction in the American Dollar's price.
However in my personal opinion we all know that China dominates the entire worlds manufacturing. With the rise of Petro Yuan it will become even more powerful. If other countries adopt Petro Yuan the Chinese will become the new Kings of the World. So much centralisation of power in a single country cannot be good for the future of the entire planet more over the political setup of China is also a mystery. One cannot place too much faith and trust in China.
The American Dollar has long been the most trusted currency in the world, even though it may be a simple piece of paper its value lies in the trust people put in it.
In my opinion the World not only needs Petro Yuan, it also needs Petro Dollar. Its in the interest of all other nations that they let both these systems survive.
- Jumping onto any one of them would be giving too much power to one particular country And we all know what happens to absolute power.