Since 1973, the dollar has held sway over the global financial system through its connections to oil, and with the Middle Eastern producers who sell it in American currency. But as dollar hegemony has waned over the past decade, and as the U.S. has gone to war against any nation (Iraq, Iran, Libya) who has tried to sell their oil in currencies other than the dollar, members of OPEC have been seeking ways to move away from the petro-dollar and into alliances with other powers that could protect their sovereignty.
And now they may finally have it.
On Dec. 27, the United Arab Emirates (UAE) signed an agreement with China to become an RMB hub and clearing house for the expanding Chinese currency. And with one of the richest OPEC states opening the door for the Yuan, it will not be long before others like Saudi Arabia join on board which will then initiate the use of the Yuan in global oil purchases.