You are here
China's oil futures launch may threaten dollar's primacy, UBS analyst says
By Kate Duguid
Reuters
Monday, March 26, 2018
NEW YORK -- China's launch of its crude futures exchange today will improve the clout of the yuan in financial markets and could threaten the international primacy of the dollar, argues a new report by Hayden Briscoe, APAC head of fixed income at UBS Asset Management.
"This is the single biggest change in capital markets, maybe of all time," Briscoe said in a follow-up telephone interview.
The launch of the oil futures denominated in China's renminbi currency, also known as the yuan, is China's first commodity derivative open to foreign investors. This marked the culmination of a decade-long push by the Shanghai Futures Exchange to give the world's largest energy consumer more power in pricing crude sold to Asia.
... Dispatch continues below ...
We Are Amid the Biggest Financial Bubble in History;
When It Bursts, Bullion Owned in the Safest Way Will Protect Wealth
With GoldCore you can own allocated -- and most importantly -- segregated coins and bars in Switzerland, Singapore, and Hong Kong.
Switzerland, Singapore, and Hong Kong remain extremely safe jurisdictions for storing bullion. Avoid exchange-traded funds and digital gold providers where you are a price taker. Ensure that you are outright legal owner of your bullion. If you do not own segregated bullion that you can visit, inspect, and take delivery of, you are exposed.
Crucial guides to storage in Singapore and Switzerland can be read here:
http://info.goldcore.com/essential-guide-to-storing-gold-in-singapore
http://info.goldcore.com/essential-guide-to-storing-gold-in-switzerland
GoldCore does not report transactions to any authority. Safety, privacy, and confidentiality are paramount when we are entrusted with storage of our clients' precious metals.
Email the GoldCore team at info@goldcore.com or call our trading desk:
UK: +44(0)203-086-9200. U.S.: +1-302-635-1160. International: +353(0)1-632-5010.
Visit us at: http://www.goldcore.com
Already today Unipec, the trading arm of Asia's largest refiner Sinopec, has inked a deal with a Western oil major to buy Middle East crude priced against the newly-launched Shanghai crude futures contract.
This helps cement the exchange's viability and challenges the petro-dollar system, in which oil deals are executed in dollars. This would decrease demand for the greenback and boost U.S. inflation. ...
... For the remainder of the report:
https://www.reuters.com/article/us-china-oil-futures-dollar/china-oil-fu...
* * *
Join GATA here:
Mines and Money Asia
Tuesday-Friday, April 3-6, 2017
Hong Kong Convention and Exhibition Centre
https://asia.minesandmoney.com/
* * *
Help keep GATA going
GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at:
To contribute to GATA, please visit:
