"The increasing demand for crude in Asian countries such as China was enough reason for the region to prepare to pay for trade in the Chinese currency renminbi (RMB), an HSBC official said.
Georges Elhedery, HSBC head, Global Banking and Markets (Mena), noted that the region was slow to adopt RMB since trade between the Middle East and China was still highly dependent on the greenback.
“The Middle East has been slow in adopting RMB but we’re starting to see a shift in the region towards the Chinese currency,” Elhedery told Gulf Times in a meeting with reporters at the HSBC offices in Doha.
He explained that minimal oil and gas exports to the West have made the region dependent on Eastern buyers such as South Korea, Japan, and China, which was critical in setting the international price of crude.
Elhedery stressed that the income of the region from energy reserves depended on China’s economic performance. “Considering how China fares would also be reflected soon in their currency as it becomes free-floating,” the HSBC official said..."
at http://stratrisks.com/geostrat/21611
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