[maui_hawaii]

Not nessesarily.

I can see your concept but it doesn't work like that in real life with China.

Chinese currency is a non-deliverable currency, hence it cannot leave the country.

Hence, China is not buying oil with RMB.

[Lessismore]

Suppose that a DVD player costs 50 RMB to make, and that at 5 to 1 the Chinese charge Walmart $10 / DVD player.

If the ratio goes to 4 to 1, then the Chinese charge Walmart $12.50 / DVD player.

At $60 / barrel, they can buy 1/6 of a barrel with $10, and they can buy 1/5 of a barrel with $12.50.