Russia is now accepting the Chinese Yuan for settlement of oil trades between the two countries. According to Bloomberg, Russia acceptance of the Yuan, will push Russia ahead of Saudi Arabia as China's primary source for oil.
Interestingly, both Iran and India has agreed to settle oil trades between both countries in Rupees, again pushing aside the petrodollar US$).
Source: russia-insider.com.
Both China and India are expected to grow their economies despite a slowing global economy, and thus their demand for oil will continue. As the settlement of oil trades move into the Yuan and Rupees, the demand for the petrodollar will diminish significantly. This could further exacerbate the weakening of the US$ going forward.
Starved of a major client in China, Saudi Arabia, may contemplate following Russia's footsteps. Iran having agreed with India to trade in Rupees, will mostly likely trade with China in Yuan.
Against this threat, one wonders how the US might react. Another war to maintain the US$ dominance? The geopolitical theatre is already in turmoil, and the world is better off without a war that could have far reaching consequences.
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