Topic: Effect of policies and politics of developed and developing countries on India’s interests, Indian diaspora
3) China is planning the launch of a yuan-denominated oil futures exchange. What is oil futures exchange? How will this move by China affect global energy markets? Examine. (250 Words)
Why this question?
Petroyuan on the lines of petrodollar will be a significant issue and might draw UPSC attention. More than this, this question is asked to introduce you to a new concept.
Key demand of the question:
First part needs definition, comparison with petrodollar and an example. In the second part write about impact of Petroyuan on global energy markets. If possible, include1-2 points on its impact on India (even if it’s not asked)
Examine: Present facts as they are. If it’s opinion, quote the person or institution (don’t write it as your own).
Structure of Answer:
In the introduction write about China’s increasing assertiveness in almost all spheres of international order and its ambition to herald new global order through new institutions, trade and currency (refer to Petroyuan).
In the body, There should be TWO mains parts to address two demands of the question. In the Second part, divide answer into categories – impact on US Dollar, Middle East markets etc.
In the conclusion, write about threat to the US dollar’s continued dominance and how China’s move could destabilise global markets. (again use your creativity to write relevant content and conclusion)