According to an official announcement from the China Securities Regulatory Commission, the long-awaited Yuan denominated oil contract will commence on March 26.





The significance of this alternative currency futures contract of course is that it will be the first non-dollar oil contract since the Petrodollar agreement was put into place over 40 years ago. And as such it will potentially strike a huge blow to dollar hegemony, both on a geopolitical and on a financial level for America's authority over the global reserve currency.Over the past decade, and in particular over the past five years, the dollar has been losing global market share as a payment currency, seeing its percentage drop from well over 70% around the beginning of the century to its current level of about 43.9% . And while use of the Chinese RMB in global transactions has slowed a bit over the past year in their quest to becoming an equal partner with the dollar, China has used their time to both build the infrastructure and the financial models to one day soon play a major role in whatever reserve currency emerges during the next financial paradigm shift.In the end, China's new yuan-denominated oil contract is not being expected to fully supplant the Petrodollar, but instead offer an alternative for nation's hampered by economic sanctions to be able to purchase energy outside of the dollar system. And in this it will also accelerate the process of RMB internationalization, and force Washington to recognize China as a more equitable player when it comes to the world's monetary system.