China is preparing to launch a new oil commodity exchange for yuan-backed oil futures, Arab TV channel CNBC reports

China is willing to put an end to the dollar dominance in pricing for both spot and long-term oil contracts.

CNBC notes that Beijing is willing to grant privileges to the countries-counterparts, which will switch to settlements in the Chinese currency. According to the TV channel, China has already offered Saudi Arabia to pay for the imported oil in yuan. Saudi oil made up about 15% of China’s total oil import in 2016.

As known, China’s largest oil supplier is Russia. China has increased the import of oil from Russia up to 5.052 million tons, 17.8% more than last February, according to the data from the Chinese General Administration of Customs.

The channel also refers to analysts’ opinion that the new exchange launch will weaken the US sanctions that are backed on dollar.

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