The war in Iran is testing the dollar’s role as the currency for global oil trade, with one long-term consequence being a potential shift to using more Chinese yuan, according to Deutsche Bank.

Iran is allowing the passage of ships through the Strait of Hormuz if oil payments are made in yuan, according to media reports.

  • limonfiesta@lemmy.worldEnglish
    9·
    2 days ago

    This isn’t the 1980s.

    Yes, the Petrodollar is an important part of American hegemony, but it’s not load-bearing like it once was. It’s role in propping up the dollar has been replaced by the globalized financial markets.

    So yeah, it would not be good for American power, but it would not cripple it by any stretch.