Shanghai, China’s financial hub, wants to increase the number of yuan-denominated deals on its energy exchange, the municipal government said, as it seeks to promote the use of the Chinese currency overseas and weaken the U.S. dollar’s dominance.

A notice on the Shanghai government’s website on Tuesday called for the promotion of yuan settlement on the Shanghai Petroleum and Natural Gas Exchange to be stepped up over the next three years, including in spot, futures and over-the-counter derivatives trading.

China has in recent years emphasised settling oil and gas trades in yuan. Most recently, national oil company CNOOC 0883.HK and France’s Engie ENGIE.PA completed a yuan-settled liquefied natural gas (LNG) trade on the exchange in October.

President Xi Jinping called on Gulf nations to use the platform for yuan settlement during a 2022 visit to Riyadh.

Government bodies including the Shanghai divisions of the development and reform commission, commerce department, and financial regulatory administration, as well as the Shanghai branch of People’s Bank of China (PBOC), would be involved in the yuan push, according to the notice.
Source: Reuters (Reporting by Colleen Howe; Editing by Sharon Singleton)