Petro-Yuan Still Far-Fetched Even Amid Saudi Mulling Oil Deals

  • Saudi Arabia weighs pricing oil sales to China in yuan: report
  • China’s onshore yuan rises 0.4%, most since December

Photographer: Simon Dawson/Bloomberg

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The yuan is getting a boost from reports that Saudi Arabia is in talks with Beijing to price some oil sales in the Chinese currency, a development that analysts believe may be some way off.

While a deal between the world’s biggest producer and importer of oil could undermine the dominance of the dollar and euro in such trades, market watchers expect that to be a drawn out process. The main hurdle is the yuan’s limited convertibility and that it is still tightly managed by China.