Deutsche Bank says Iran conflict may give rise to "petro-yuan"

Deutsche Bank pointed out that the conflict in Iran is testing the status of the US dollar as the global currency for pricing oil trade, and one of its long-term effects may be more transactions shifting towards the use of the Chinese yuan. Deutsche Bank strategist Mallika Sachdeva stated in a report on Tuesday that this conflict could be a catalyst for weakening the dominance of the "petrodollar" and the emergence of the "petroyuan"; he mentioned media reports that Iran allows ships to pass through the Strait of Hormuz, with the condition that oil payments are made in yuan. The report stated that further erosion of the "petrodollar" system could have "significant ripple effects" on the use of the dollar in global trade and savings, as well as its status as the world's reserve currency. Meanwhile, China is also accelerating the internationalization of the yuan, challenging the dominance of the dollar in global trade and finance.