The WHERE and the WHY is about the petroyuan.
The WHERE is not technically Citicbank–its the massive, two-tower (Twin Towers, anyone?) complex of Shenzen Energy Group.
https:// www.arup.com/projects/shenzhen-international-energy-mansion
It's supposed to be build around sustainability, the environment, and was built in response to the Shenzen Stock Exchange (the WHY). The SSE building is supposed to be the most green, environmentally-friendly building in the country. The international community has been riding China to deal with its pollution, and this is its response.
https:// www.arup.com/projects/shenzhen-stock-exchange
But I'm pretty sure this is all a lie.
On March 25th, China finally began trading petroyuan futures. Billions were traded in the FIRST HOUR of trading. It was launched, after many years of strategy, as a direct attack on the petrodollar.
The petrodollar is the main reason the US is the world's reserve currency. Essentially, all of the world's oil trading is done in petrodollars, which gives the dollar MASSIVE power. This allows us to sell a bunch of Treasuries to fund our bankrupt country.
But the rest of the world knows we're bankrupt, and they know we invade all those Middle Eastern countries every time one of them tries to move away from the petrodollar. Other countries are held hostage by the dollar because of this. They would LOVE to use something else–something like the petroyuan.
China has been maneuvering to take reserve currency status from the dollar for a long time. The yuan was typically pegged to the dollar at a certain rate (5 yuan for 1 dollar, or something). In order for China to get reserve status, it would need to uncouple the yuan from the dollar.
It began this overtly in August 2015. The market freaked out, though it was the start of a currency war. China soothed everyone.
http:// money.cnn.com/2015/08/11/investing/china-pboc-yuan-devalue-currency/index.html
In November 2015, the yuan joined the IMF's basket of currencies that enjoy Special Drawing Rights–considered the most stable currencies. The yuan would need to be included in this basket to be a credible candidate for reserve status.
https:// www.cnbc.com/2015/11/30/imf-agrees-to-include-chinas-rmb-in-benchmark-sdr-currency-basket.html
A couple months later, China's yuan experienced "problems" at the outset of January 2016. I suspect they messed with it deliberately to assuage everyone's fears that they would go after the dollar.
http:// money.cnn.com/2016/01/08/investing/china-yuan-currency-dilemma/index.html
China has also been hoarding gold to back its currency. A gold-backed currency signals to the market that there is an inherent value to the currency, which makes it less risky. Which makes it a good candidate for reserve status.
https:// www.bloomberg.com/news/articles/2015-07-19/china-s-no-longer-secret-hoarding-of-gold-may-not-be-finished
China is also now the world's largest consumer of oil (used to be the US). And its taste is growing. What happens when you're the largest buyer? You dictate prices–and how the transaction is enacted. Such as in a petroyuan.
https:// www.eia.gov/todayinenergy/detail.php?id=15531
What I'm saying is China is finally, after many, many years, perfectly placed to snatch reserve status from us. And if they do, our bankrupt country actually begins acting like a bankrupt country.
But there's hope. On March 3/22, Rep Mooney entered HR 5404, which proposes to define the dollar as a fixed weight of gold. I think that if we pass this, the dollar immediately becomes much safer, and other countries won't bother with the yuan, because it would be too much hassle (and volatility and risk) inherent in switching. And we might be saved.
In a nutshell, China is going to screw us, using oil, in a bunch of buildings allegedly designed for sustainability and green energy. It's a classic China move. And that's why Trump tweeted what he did.
PS, Citic bank is letting Venezuela get around the petrodollar by using petroyuan.
https:// www.newsmax.com/Finance/StreetTalk/venezuela-anti-dollar-crusade/2017/10/26/id/822190/
More sauce:
https:// www.congress.gov/115/bills/hr5404/BILLS-115hr5404ih.pdf
https:// www.zerohedge.com/news/2018-03-25/petroyuan-futures-open-over-10-billion-notional-trades-first-hour