Skip to comments.“This Is A Trend”: Increasingly More Russian Companies Set To Drop Dollar, Switch To Chinese Yuan
Posted on 06/10/2014 12:49:52 PM PDT by Olog-hai
As we have been reporting (and forecasting for the past several years), the Eurasian anti-US Dollar axis is rapidly taking shape, with recent events catalyzed and certainly accelerated by US foreign policy in Ukraine, which has merely succeeded in pushing Russia that much closer, and faster, to China. The latest proof of this came overnight when the FT reported that Russian companies are preparing to switch contracts to renminbi and other Asian currencies amid fears that western sanctions may freeze them out of the US dollar market, according to two top bankers.
According to Pavel Teplukhin, head of Deutsche Bank in Russia, cited by the Financial Times, "Over the last few weeks there has been a significant interest in the market from large Russian corporations to start using various products in renminbi and other Asian currencies and to set up accounts in Asian locations."
Andrei Kostin, chief executive of state bank VTB, said that expanding the use of non-dollar currencies was one of the banks main tasks.
(Excerpt) Read more at zerohedge.com ...
Yet another accomplishment of the Obama regime and the Obama/Hillary “Reset”.
Way to go guys; your competence is stunning.
IMHO we should be looking for ways to nullify Chinese and Russian economic and potentially military aggression, but we can do this better by promoting traditional American economic prosperity to our neighbors rather than capitulating to an ideology that doesn't work and hurts people.
Good. Screw 'em both.
Nothing in there about what happens when the China bubble bursts. Millions of hits searching for, china bubble 2014.
Will the dollar survive and the yuan not?
Red China has literally hundreds of millions of citizens (double our population) left out of the economic "miracle." Red China is corruption, oppression, pollution, avarice via Party connections -- maybe even division among its tyrants.
All we have to worry about are a couple million aged 1960s Marxist-Alinsky campus radical, psycho spoiled brats and their ideological issue (the Obama Administration and its "Establishment" of government, media and academia).
In conjunction with this announcement, the Republic of Mongolia has indicated that they are also changing the appearance of their currency, the umol, to very nearly match the latest Chinese tender. The Ministry of Finance believes that this will aid in the acceptance of their own currency in International transactions, since after all:
“If you see Yuan, you’ve seen Umol...”
This is not a trend, this is nonsense.
The dollar is the world’s reserve currency and will remain the world’s reserve currency throughout the foreseeable future.
No one in their right mind is going to use the Chinese yuan as their reserve currency.
>> Maybe there is the thought that we will need to develop dollar-based economic alliances in this hemisphere
So how exactly will forty million chickenpluckers, landscapers, roofers, drywallers and painters sending money home to Mexico help our economy?
So-called “liberalization” of “immigration” won’t achieve anything except civil war and beyond. The fed destroyed the dollar’s worth by all the borrowing and turning it into a fiat currency, and the country’s manufacturing base is gutted. Who could the US ally with now after the liberal leaders stabbed all of our allies in the back with respect to Russia and China anyway?
What makes you think that?
Countries have been moving away from the dollar even before 2008. Once they decide they don’t need the dollar, out goes the rug.
Oh, I see; you’re basing this on the jen-min-pi. Well, there are other currencies out there, such as the euro.
That's not how it works.
True, this can really start a domino affect.
Yes, there will be trade conducted in other currencies, but the yuan will not ever by the world’s reserve currency.
However, people are free to change their US dollars into Chinese yuan whenever they cash their paychecks that were drafted in dollars, but I doubt anyone would do so.
Only one major problem boys. If the Yuan comes to pass as the reserve currency all the US has to do is stop Chinese imports and their Yuan will dissolve overnight.
ZeroHedge, the InfoWars of economic news.
No. They have plenty of alternate customers. Better ignore that bit of liberal propaganda.
And even if it did hurt the yuan, it wouldn’t stop the dollar from going kaput. Reserve currency status insulates a currency from damage in the short term too.
If you believe that to be he case, I urge you to get a jump on 99.99% of those holding US dollars and trade all your dollars into yuan.
By plucking chickens, scaping land, roofing, drying wall, and painting.
The work that illegal aliens or anybody else do is a benefit to the country.
But they are an INVASION.
No, I don’t believe that the yuan is going to be the new reserve currency. A new reserve currency is coming notwithstanding.
No, putting Americans out of work in favor of illegals (especially) is no benefit to the country at all. Especially with those illegals sending their money out of the country to boot.
>> The work that illegal aliens or anybody else do is a benefit to the country.
Illegals are NO benefit. They are a malignant detriment to the CITIZENS who need those jobs. And the government largesse the illegals consume greatly outweigh their supposed contribution.
Dollars are only useful if you can use them to buy stuff. Years ago the USA used to make lots of stuff that it sold in dollars, now not so much. However China does make lots of stuff so it's currency can be used to buy stuff. If the Saudis every decide to sell oil for something other then dollars it's game over for the US dollar.
That might be a smart move,
Value of the US dollar over time
I think the dollar is going to be the reserve currency for the indefinite future, for the simple reason that there is no better alternative. What’s going to replace the dollar?
The yuan? Endangered by a massive housing bubble and a slow decrease in Chinese economic growth. The Euro? They’re worse off than we are, and backed by many entities that could decide to independently pull out. The Rouble? Russia’s economy is one tenth of ours, and is almost totally dependent on oil and gas prices remaining high.
You are correct that there has been talk in the past about dropping the dollar as the reserve currency. But no one has ever talked about replacing the dollar with another countries currency.
Instead, they talk about a basket of currencies replacing the dollar.
All it takes is for one of these alternate currencies to be backed by something tangible. Don’t doubt that any country that hates the USA would damage itself in order to hurt the USA worse; the USA then becomes the scapegoat.
Unless of course people on here have that much faith in Obama’s fiscal non-policies?
Despite the economic malaise Obama has brought us through, and the constant exaggerated refrain that "we don't make anything anymore, China does" and "China owns us and buys our debt", no other country comes close.
China may make our toys, but we make their medical equipment, aircraft, vehicles and industrial machinery.
I don't believe either the idea that a country would prioritize damaging the USA over their own well-being.
“Disproportionate”? In whose view?
Stuff the liberal propaganda. The trade deficit speaks volumes, and it certainly does not bespeak dependence on the USA of any sort.
Nobody believes that other countries would damage their own economies to get back at the USA? It’s already happened, unless everyone forgot what happened in 2008.
No one will really go to the yuan. China is in worse shape than the US.
A basket of assets is more likely.
Yes, I agree with that. But they are looking for a new reserve currency to jump on, and that’s only intensified since 2008.
Of course, there are still those that think that Obama’s fiscal non-policies have not jeopardized the dollar to the point that it’s fatal. Before WWII, nobody thought that the British pound sterling would ever stop being the world’s primary reserve currency, too.
Oh, I think it’s only natural for something to take it’s place. I recall they were trying to use the SDR as a universal currency. The yuan is crap. The ruble is as well.
If someone were to come up with an asset backed unit that was big enough, it could work.
But you need size and stability. That, right now, is just the dollar.
That’s funny. Never thought of it that way. But ZH has an edge to it that I like better than Alex Jones. But they should both be read with a grain of salt, and one eye on who is seeing you read it.
Luv it !
The sooner the USA loses reserve currency status the better.The second it does, it crashes and burns.
’ Let it Burn ‘
It’s coming. Soon our dollars won’t be worth anything.
Why better? That means that the USA’s enemies are empowered beyond the means of the USA to stop them in that case.
I’m not sure why the Russians did this...Don’t they know that an hour later they will be poor again?
I didn’t say the illegals are a NET benefit. But economically, any work they do is a benefit. If it were not, nobody would hire them to do it.
And why are you so outraged? You ignored my last sentence.
The fact that they are illegal, and are being brought in as an army to destroy the U.S., does not change the economic principle.
When, not if. Americans better wake up to make this happen.
However, I do think that if done correctly we could make in-roads in some countries in Latin America, helping ourselves and them in the process. If we ignore our hemisphere, we will wind up with more enemies in our hemisphere, and more illegal immigration. We should be in a dialogue with those countries that have similar values as ours (e.g. lots of Latin American countries value their families very highly, and have spiritual values similar to what ours have traditionally been). That dialogue, however, should be about how we can help each other and raise the standard of living across the board, not how we can absorb more of those they have not provided economic opportunity for.
You’re talking some long-ago burned bridges, that people like John Kerry have engaged in destroying the abutments to with his statement that the Monroe Doctrine is “over”.
Never said life would be better.
Once the USA loses reserve status bonds skyrocket to 15-25%. USA is unable to continue it`s neo-marxist policies. Medicaid/care, ss, obamacare, etc,etc, end and are left to the purvey of individual States.
The USA either pays it`s debts, 17 Trillion in public debt only, or goes bankrupt because it defied the enumerated powers of the Constitution.
Basically, it either forces the USA to accept enumerated powers or become a 3rd world banana republic with a dictator.
” Nothing Lasts Forever; World Bank Ex-Chief Economist Calls For End To Dollar As Reserve Currency”
What does that portend for national security? Remember, Obama and Hagel are gutting the military at the same time.
>> And why are you so outraged?
Because I’m paying attention.
Being outraged cannot change the economic truth.
I wasn’t referring to the fact that they are an army of invasion, to carry out Obama’s plan of destroying the U.S.
And I wasnt’ referring to the government largesse they consume.
I was referring only to the work they do. THAT, in and of itself, benefits somebody, or else the illegals would not be paid to do it.