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Russia Wants To Drop Dollar For Oil Payments
Oilprice.com ^ | 04-09-2018 | Irina

Posted on 04/09/2018 10:17:08 AM PDT by bananaman22

Russia is considering replacing the U.S. dollar in crude oil payments on deals with Turkey and Iran, Energy Minister Alexander Novak said as quoted by RT.

According to Novak, “There is a common understanding that we need to move towards the use of national currencies in our settlements. There is a need for this, as well as the wish of the parties. This concerns both Turkey and Iran – we are considering an option of payment in national currencies with them. This requires certain adjustments in the financial, economic and banking sectors.”

Iran, under threat of returning U.S. sanctions, two months ago decided to ditch the greenback as a currency in its imports. A directive from the Ministry of Industry, Mine and Trade ordered traders to stop placing import orders in U.S. dollars. The argument in defense of the move was that Iran has no access to dollar transactions because of the sanctions, and removing it as an import payment currency would make life easier all around.

(Excerpt) Read more at oilprice.com ...


TOPICS: Business/Economy; Politics
KEYWORDS: brics; energy; gas; gold; goldbugs; hydrocarbons; maga; oil; opec; petrodollar; reservecurrency; russia; trumprussia
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1 posted on 04/09/2018 10:17:08 AM PDT by bananaman22
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To: bananaman22

Because the world is clambering for Rubles and/or Yuan as reserve currencies to replace the USD.

Good luck with that.


2 posted on 04/09/2018 10:20:44 AM PDT by Reagan Disciple (Peace through Strength)
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To: Reagan Disciple

Once the world realizes the USD has no real value, Our quality of life will plummet, as will our buying power.

I see it as inevitable. I just want to get braces for my kids’ mouth before it happens, because it won’t ever happen afterwards.


3 posted on 04/09/2018 10:23:25 AM PDT by T-Bone Texan (Idiocracy is here, and it votes democrat.)
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To: Reagan Disciple
Because the world is clambering for Rubles and/or Yuan as reserve currencies to replace the USD.

Well, they could always move to bitcoin...

4 posted on 04/09/2018 10:23:29 AM PDT by FatherofFive (Islam is EVIL and needs to be eradicated)
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To: bananaman22

This will spark a war.... won’t ever admit this is why.. but the powers that be will not allow oil off of the dollar without blood.


5 posted on 04/09/2018 10:26:06 AM PDT by HamiltonJay
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To: T-Bone Texan

I don’t doubt that we are on that path. But I remember all the talk about the EUR replacing the USD, the CNY doing the same because of how big China will become.....etc.

Reality is that collective currencies like the EUR can never supplant the USD because you are getting problems of 20+ countries. CNY is sterilized to the point that if the Chinese let it float freely they would undermine their own economy as well as force a capital flight so it can never be so available as to become relevant.

The Russian economy is so backward and corrupt that to risk accepting RUB when the Central Bank has a history of simply shutting down FX payments at will is a recipe for disaster.


6 posted on 04/09/2018 10:36:12 AM PDT by Reagan Disciple (Peace through Strength)
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To: Reagan Disciple

A point I’ve seen made that as messed up as we are, the rest of the world is even more messed up. Which is sort of the general point you were making.


7 posted on 04/09/2018 10:42:10 AM PDT by FreedomPoster (Islam delenda est)
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To: T-Bone Texan

It’s all just a consensual hallucination.


8 posted on 04/09/2018 10:45:01 AM PDT by RedStateRocker (Nuke Mecca, deport all illegals, abolish the DEA, IRS and ATF.)
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To: AdmSmith; AnonymousConservative; Berosus; Bockscar; cardinal4; ColdOne; Convert from ECUSA; ...
Oh yeah, and the [fill in the blanks] are getting together to replace the US dollar as a reserve currency. Again. For the millionth imaginary time..

9 posted on 04/09/2018 10:46:39 AM PDT by SunkenCiv (www.tapatalk.com/groups/godsgravesglyphs/, forum.darwincentral.org, www.gopbriefingroom.com)
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To: T-Bone Texan

All currency in the world today is faith based (confidence). The reality is that the USD is the most consistent, widely accepted currency of the world’s largest economy. Some day there may well be another currency that is universally accepted for international trade for commodities. But it is a ways off yet. If a couple of nations decide to do one off deals and create the bank and capital to back their deals, good for them. With the volatility and risks associated with those currencies, a big swing could cost a party chitloads of money as the value dips or jumps.


10 posted on 04/09/2018 10:50:35 AM PDT by Tenacious 1
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To: FreedomPoster

Exactly. Until our debt-to-GDP profile is completely bizarre compared to other countries it’s all relative to the point of being a ridiculous assumption.

Just like credit ratings.......if the US sov debt rating ever comes to crack so bad that countries like France and Italy look like paradise by comparison, then this replacement USD talk becomes valid. But if we all slide in the same general direction, you choose potting soil over sand every time.


11 posted on 04/09/2018 10:53:04 AM PDT by Reagan Disciple (Peace through Strength)
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To: Reagan Disciple

What’s the difference between Brazil government debt to GDP at 80% and US debt to GDP at 100%?

The Brazilan Real is not a world reserve currency and international trade is not traded in Reals. The largest item is oil/energy, its is solely the reason the US is knee-deep in places like Syria, Iraq and Libya.

Having the world’s largest reserve currency, having the world trade oil in US Dollars, and having a huge military to keep the world existing geo-political alignments in place means the USA has a big advantage

The USA will run a $1 Trillion budget deficit this FY. Americans will buy some of that debt, but so will many foreign investors and central banks. That keeps our interest rates low and gives huge advantage to stupid US politicians to spend (and waste) money. IMHO, progressives, leftists and our coastal political and academic elites in CA, MA, DC and NY City would disappear immediately without their special access to this printed money and debt. They are huge beneficiaries of this special advantage.

China and Russia aren’t fools. They will continue to attack this special advantage of their adversary.


12 posted on 04/09/2018 10:56:21 AM PDT by PGR88
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To: Reagan Disciple

No one said anything about replacing the dollar as a world reserve currency, but there is growing demand for alternatives to US financial hegemony.


13 posted on 04/09/2018 11:02:25 AM PDT by mac_truck (aide toi et dieu t'aidera)
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To: PGR88

Ok so maybe I wasn’t clear as the BRL has never been considered in this context. Also, because it’s a non-deliverable currency for the most part, like CNY it cannot be fully utilized as such anyway.

I’m not about to dispute the awful course we’re on as a country driven solely by a combination of US Treasury appetite and profligate spending.

The Chinese and Russians certainly are not foolish and if they desire, they can trade oil (to China) for capital (to Russia) all day every day and would still be stuck with each others currencies unless they converted to gold or, you guessed it, the USD to make other payments that countries like Brazil and EU-land would accept as those countries are not looking to strengthen their currencies anytime soon.

Your anger is properly placed. The world stage at this point in time just hasn’t caught up.


14 posted on 04/09/2018 11:04:13 AM PDT by Reagan Disciple (Peace through Strength)
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To: mac_truck

Considering all commodities are settled in USD, any talk about removing the USD from what is the largest pool, crude, is definitely a primary step in that argument and has been thrown about before by the Chinese, the Saudis (foolishly) and the Iranians.

There is not a growing demand for ex-USD assets. There is a growing call to undermine the US in any way possible that cannot be achieved on pure global trade because the US is the largest consumption based economy the world has ever or will ever know.


15 posted on 04/09/2018 11:08:14 AM PDT by Reagan Disciple (Peace through Strength)
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To: Reagan Disciple

I also agree with you. At is base level, few non-government and private citizens of the world want to hold Chinese Yuan or Rubles. I know I don’t.

Besides the simple fact these are not readily useable for nearly all Non-Chinese and Non-Russian people (this is what these countries are attempting to change), additionally, you have to simply “trust” the state-run banks of Russia and China and their political authorities to let you even have your money when you demand it. As non-open financial systems, non-market economies, they will always be swimming against a strong current if they want their currencies widely accepted.

My own belief is that China and Russia understand this, and will instead promote gold as an international option to supplant the US Dollar.


16 posted on 04/09/2018 11:18:55 AM PDT by PGR88
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To: bananaman22

Well, there’s always the Petro.


17 posted on 04/09/2018 11:23:53 AM PDT by Billthedrill
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To: Reagan Disciple
Considering all commodities are settled in USD...

False, all commodities are NOT settled in USD.

...any talk about removing the USD from what is the largest pool, crude, is definitely a primary step in that argument

Again, no one is talking about removing or replacing the USD...they're developing alternatives.

For example, the Petro/Yuan began trading last week.

18 posted on 04/09/2018 11:34:38 AM PDT by mac_truck (aide toi et dieu t'aidera)
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To: T-Bone Texan

“Once the world realizes the USD has no real value, Our quality of life will plummet, as will our buying power.”

Given our debt, it MUST end this way. Very sad for this once-great country, but we DEMANDED it by wanting low taxes and high spending at the same time...and we got it.


19 posted on 04/09/2018 11:35:12 AM PDT by BobL (I shop at Walmart and eat at McDonald's...I just don't tell anyone)
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To: BobL

Quick, buy the amazing BITCOIN before it’s too late!! Oil will soon trade ONLY in bitcoin, pass the truth on!!


20 posted on 04/09/2018 11:36:04 AM PDT by Professional
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