A Study on the Trade Effects of Cross-border Settlement of Digital Yuan—Based on Middle Eastern Oil Trade

Abstract

Against the backdrop of accelerated global de-dollarization, escalating international geopolitical conflicts, and the reshaping of commodity settlement systems, the digital yuan, as my country's legal digital currency, possesses strong applicability in cross-border oil trade in the Middle East due to its technological advantages such as real-time clearing and programmability. This study uses Middle Eastern oil trade as a scenario to analyze the application effectiveness of the digital yuan from the perspectives of settlement costs, efficiency, and exchange rate risk management. It also explores its institutional support effects and practical bottlenecks in conjunction with national policy tools. The research shows that the digital yuan can reduce settlement costs, improve turnover efficiency, and mitigate exchange rate and sanctions risks; however, the imperfect offshore clearing system is a core factor restricting its large-scale promotion. Based on this, this paper proposes optimization paths from aspects such as improving cross-border payment facilities and strengthening the layout of clearing banks. This research enriches the theoretical connotation of the scenario-based application of the digital yuan and provides practical reference for its implementation in cross-border commodity settlement, RMB internationalization, and energy financial security.