BRICS Oil Titan Snubs Dollar, Bets Big on Chinese Yuan Bonds

Another day, another BRICS power play—this time, a major oil player ditches greenback assets like last season's crypto fad. The move? Loading up on Chinese yuan bonds instead.

Dollar dominance takes another hit as emerging markets rewrite the rulebook. Who needs Fed-backed paper when you've got petroyuan pipelines?

Closing thought: Wall Street analysts currently hyperventilating into their gold-plated inflation hedges.

BRICS: Kazakhstan’s Oil & Gas Firm Eyes Chinese Yuan Bonds, Sidelining US Dollar Assets

KazMunayGas is looking to explore cheaper borrowing terms and usher the oil and gas industry into a new era. Reducing US dollar-denominated assets was the primary goal of BRICS and now other countries are following suit.said CEO Askhat Khassenov to Bloomberg.said Khassenov.

For the uninitiated, dim sum bonds refer to notes denominated in the offshore Chinese yuan. It mainly trades outside mainland China. In addition, panda bonds are yuan debt sold by foreign borrowers in China’s domestic market. It might not take much time before state-run oil firms from BRICS countries start eyeing Chinese yuan bonds.

The BRICS development will add a dent in the US dollar-denominated assets while Chinese yuan bonds go for the win. This is the first such instance where the yuan assets are being considered and might not be the last either.