SINGAPORE (Apr 30): In the early 1970s, the US administration led by President Richard Nixon came to a synergistic agreement with Saudi Arabia that would dictate the way the world transacts in oil. The US would provide technology to the Arab Kingdom and the Saudis would price their oil sales in the greenback, with any excess profit to be invested in US Treasuries.

Hence, the petrodollar was born and it has enjoyed global supremacy for the past four decades. However, much has been said about the inception of the “petro-yuan”. Simply put, it refers to a situation in which China is able to purchase oil in its currency, the renminbi (RMB).

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