Chinese digital yuan CBDC used for first time to settle cross-border oil deal

The digital yuan has been used for the first time to settle an oil transaction, the Shanghai Petroleum and Natural Gas Exchange (SHPGX) announced.

  • The yuan was first used for a liquified natural gas (LNG) purchase on SHPGX in March when the French TotalEnergies agreed to sell LNG to the China National Offshore Oil Corporation (CNOOC).
  • The second LNG deal in yuan occurred last week between CNOOC and French Engie. Those transactions did not involve the digital yuan.
  • The seller and the price in the transaction were not disclosed.

The crude oil deal marks an overall major step in the use of the yuan on the international market and in the global movement toward de-dollarization.

  • In the first three quarters of 2023, the use of the yuan in cross-border settlements was up 35% year-on-year, reaching $1.39 trillion.

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