Since the launch of the Chinese oil futures contracts Iran, Qatar and Venezuela have made agreements to participate in oil swaps. On May 3, Nigeria signed an agreement with China to set up a currency swap. This is an initial step prior to setting up oil swaps.
According to Sputnik News
“The Central Bank of Nigeria (CBN) has signed a currency swap deal worth about $2.5 billion with the People’s Bank of China to provide adequate local currency liquidity for transactions between national businesses, The Punch newspaper reported on Thursday, citing a high-ranking official from the Central Bank of Nigeria (CBN). The deal that is the result of two-year tense talks, aimed at facilitating bilateral trade, investments and strengthening of the financial stability of both nations as well as reducing difficulties related to the use of third currencies in mutual business transactions”.
If / when Nigeria agrees to trade with China, this will be the fourth OPEC nation to leave the petrodollar likely soon to be followed by more countries. As the Chinese oil future contracts gain traction, it will be an alternative to the petrodollar. With current sentiments about the US’s blatant corruption, it is almost a given countries will move swiftly to ditch the dollar.