China officials claim meetings held with the Mexican government and Petróleos Mexicanos (or Pemex) are for investment and economic growth inside Mexico. Crude oil purchases fall under this heading however officials on both sides in the past have stopped short of publicly discussing crude oil or any talks related to any special agreements relating to crude oil purchases.
Sources inside Mexico claim this week that China has in fact brokered a secret deal with Pemex to purchase crude oil using currency means other than the US Dollar. The details of this agreement are still unknown at this time but China is expected to make a public announcement within the next few days.
Over the past ten years with new trade agreements China has invested billions of dollars inside Mexico. China has helped the Mexican government create jobs and has financially supported investments in the privatization of ports and infrastructure throughout Mexico. Mexico continues to privatize large sectors of its economy and China is line to benefit from additional investments inside Mexico.
Since the 2009 global economic crisis Mexico's central bank has been quietly purchasing large quantities of gold. Mexico Central bank buys 100 tonnes of gold
Then again in May 2012 Mexico Central Bank boost gold holdings yet again and some of this gold purchased by Mexico’s Central bank has come from China.
These large gold purchases by the Mexican Central bank and the successful restriction of the US dollar from use inside Mexico (as already reported) along with a closer relationship with China and speculation of secret petroleum deals that do not include using the US dollar are sure to raise new concerns in global markets as this story continues to unfold. These strategic moves on the part of Mexico’s Government and Mexico’s Central bank are said to be protective measures to shield Mexico from what it sees as the imminent and unavoidable devaluation of the US dollar. (In layman’s terms the collapse of the US Dollar)