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.
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