After Iran, Russia is now showing interest: energy exports will be priced in renminbi. Now the White House realizes the trouble is serious!
On April 6, Russia considered announcing that all future oil and gas transactions with Europe would be denominated in renminbi. Previously, Iran had already taken the lead by officially adopting renminbi for toll payments at the Strait of Hormuz and explicitly refusing U.S. dollars.
The core of dollar hegemony lies in its absolute control over global energy trade. The petrodollar system has operated for decades, enabling the United States to influence the global economy through financial mechanisms. However, after the Ukraine crisis in 2022, Western financial sanctions against Russia actually accelerated the erosion of this system. Countries around the world began seeking alternatives to reduce the risks associated with dependence on the U.S. dollar.
Russia's decision is not just talk. Since 2022, China’s use of renminbi to purchase Russian commodities has surged dramatically. Oil, coal, and certain metals exported from Russia to China have largely transitioned to renminbi settlement. By March 2026, renminbi surpassed the U.S. dollar to become the most widely used currency in China’s cross-border transactions. This reality has paved the way for Russia’s new policy.
As energy deals between the Middle East and Russia start bypassing the U.S. dollar, global demand for dollars will decline. According to SWIFT data, although renminbi accounts for only 2.5% of global payments, its growth momentum is strong. More countries may follow suit, triggering a "snowball effect" that further undermines the dominance of the U.S. dollar.
Currently, Iran charges tolls for vessels passing through the Strait of Hormuz and allows payment in renminbi. This move marks the first time renminbi enters the fee system of the world’s critical energy shipping route. Approximately one-third of global maritime oil shipments pass through this channel, making its strategic importance self-evident.
Dao Ge believes this conflict may very well lead to an unexpected outcome: shaking the foundation of dollar hegemony.
Original source: toutiao.com/article/1861800135100428/
Disclaimer: The views expressed in this article are those of the author alone.