The war with Iran, however, could accelerate it, according to Deutsche Bank strategist Mallika Sachdeva. Reports suggest Tehran is already looking to price and sell its oil exports to China in yuan, the currency used by the world’s second-largest economy, in exchange for safe passage through the Strait of Hormuz. Such a move could “test the foundations of the petrodollar regime” and create “significant downstream effects to the dollar’s use in global trade and savings, and its role as the world’s reserve currency,” she writes.
