Saudi Aramco prepares to issue RMB-denominated bonds
According to Japanese media reports, Saudi Aramco, the Saudi state-owned oil company, has begun preparing to issue RMB-denominated bonds. In the context of lower oil prices and the strengthening of the global energy transition trend, Saudi Arabia hopes to achieve diversified financing methods. In addition to seeing the growing demand for oil and related derivatives in Asia, major oil-producing countries such as Saudi Arabia and Iran have increased their RMB Utilization rate of settlement. Oil transactions are generally settled in U.S. dollars, so many oil-producing countries peg their currencies to the U.S. dollar, while oil-importing countries hold U.S. dollar foreign exchange reserves to deal with crises. As a giant in the oil industry, if Saudi Aramco further increases the use of renminbi, it will not only help the internationalization of petroleum renminbi, but also may affect the settlement status of petrodollars.