China Scores Another Currency Win Over The U.S. Dollar
China has made a significant step in reducing U.S. dollar use in global trade by securing a deal with mining giant BHP to price a portion of iron ore sales in renminbi. This follows a seven-month standoff and marks a shift in commodity pricing, traditionally dominated by the dollar. The move aligns with China's broader strategy to increase the renminbi’s role in international trade and reduce reliance on the U.S. financial system. It also reflects growing influence of China’s commodity pricing mechanisms in global markets.
- ▪BHP agreed to price a small portion of its iron ore sales to China in renminbi, ending a seven-month dispute over dollar-denominated contracts.
- ▪The deal includes recognition of China’s Beijing Iron Ore Port Spot Price Index and a 1.8% price discount for Chinese steel mills.
- ▪China’s state-backed China Mineral Resources Group (CMRG) played a key role in pressuring BHP to accept the new terms.
- ▪Other major miners like Rio Tinto and Fortescue already accept Chinese pricing systems for部分 sales.
- ▪The shift reflects a broader trend of de-dollarization, including rising international borrowing in renminbi and increased use in oil and commodity trades.
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AsiaChina Scores Another Currency Win Over The U.S. DollarByTim Treadgold,Contributor.Forbes contributors publish independent expert analyses and insights. Tim Treadgold is an Australian journalist specializing in miningFollow AuthorApr 28, 2026, 10:50pm EDT--:-- / --:--This voice experience is generated by AI. Learn more.This voice experience is generated by AI. Learn more.Unloading iron ore at the port of Qingdao, China. (Photo by Costfoto/NurPhoto via Getty Images)NurPhoto via Getty ImagesChina’s drive to de-dollarize its trade with the rest of the world by replacing the U.S.
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