NEW YORK, March 26 (Reuters) - China launched on Monday of its crude futures exchange will improve the clout of the yuan in financial markets and could threaten the international primacy of the dollar, argues a new report by Hayden Briscoe, APAC head of fixed income at UBS Asset Management.
“This is the single biggest change in capital markets, maybe of all time,” Briscoe said in a follow-up telephone interview.
The launch of the yuan-denominated oil futures - China’s first commodity derivative open to foreign investors - marked the culmination of a decade-long push by the Shanghai Futures Exchange (ShFE) to give the world’s largest energy consumer more power in pricing crude sold to Asia.
Already on Monday, Unipec, the trading arm of Asia’s largest refiner Sinopec, has inked a deal with a western oil major to buy Middle East crude priced against the newly-launched Shanghai crude futures contract. (Reporting by Kate Duguid; Editing by David Gregorio)