Big blow to America! Iran changed the rules in the oil game, now China’s currency will work instead of dollar.

Tehran/Beijing: There is such a stir in the world market these days that it is giving sleepless nights to the superpower America. For decades we have been hearing that crude oil is traded across the world only in US dollars and this is the real power of the dollar. But now such news has come from one of the most important sea routes of the Middle East, which can shake the reign of the dollar. Iran has made it clear that if oil ships are to be removed from its territory, then US dollars will no longer be used as toll tax, but China’s currency ‘Yuan’ will have to be paid. This one decision of Iran has made China’s stock market a rocket.

Iran’s new ‘toll point’ and recovery of crores

The route through which most of the crude oil passes around the world is called ‘Strait of Hormuz’. Amidst the war and increasing tension, Iran has greatly strengthened its hold on this strategic route. According to reports, Iran is now charging heavy toll from huge oil tankers passing through here. This fee has been fixed at around $1 per barrel. Let us tell you that a large oil carrying ship (VLCC) carries about 20 lakh barrels of oil. This simply means that a ship has to pay a huge amount of around 2 million dollars to cross this route. The surprising thing is that Iran is not accepting this payment in dollars, but is demanding it in Chinese currency ‘Yuan’ or digital coins.

Strong storm in China’s stock market

As soon as the news spread that China’s currency had started being used on such a large scale in international oil trade, there was an atmosphere of celebration in the stock markets of Beijing and Shenzhen. When China’s Commerce Ministry confirmed this news, shares of companies involved in cross-border payments started touching the sky. Shares of China National Petroleum’s financial arm CNPC Capital hit an upper circuit of 10% on the Shenzhen Stock Exchange. At the same time, shares of payment service company ‘Lakala Payment’ jumped by about 7.9% and shares of fintech giant ‘Shenzhen Forms Cintron’ jumped by 9.4%.

China’s old dream and Iran’s friendship

China has been trying for years to make the countries of the world give up their attachment to the US dollar and trade in its ‘Yuan’. Now this entry of Yuan on the way to Hormuz is no less than a boon for China. Experts believe that China’s currency is now benefiting from the deep relations between Iran and China. When Iran is facing war-like situations, the Chinese Yuan has emerged as a strong and safe option for global capital. This is the reason why global investors are now investing heavily in China’s payment and oil companies, due to which America’s financial siege seems to be weakening.