The blooming economic partnership between Russia and China is bringing to life one of the US worst nightmares of the century – a gradual decline of dollar dominance in global trade, investments and payments, an author for the Turkish website T24 wrote.
A number of countries, especially Russian and China, are currently conducting a policy to shatter the dollar’s position as the global reserve currency, the author pointed out.
For instance, Moscow and Beijing have been replacing dollar transactions with ruble and yuan ones in their trade since 2011.
In 2014, the central banks of Russia and China inked a $23.5-billion three-year swap agreement.
After the West imposed anti-Russian sanctions, Russia President Vladimir Putin said: "The use of ruble and yuan will weaken the role of US dollar."
It is obvious that Russia and China are building up a sustainable alliance for global de-dollarization, and the US is certainly nervous, the article read.
The de-dollarization will give Russia and China easier access to capital markets and insulate them from financial manipulation by Washington, geopolitical analyst Mahdi Darius Nazemroaya wrote in an article for the Strategic Culture Foundation.
"As the financial architecture of the world is being altered by China and Russia, the US dollar is gradually being neutralized as one of Washington’s weapon of choice," Nazemroaya explained.
As the post-WWII US-dominated international monetary system is threatened, Washington is striking back with propaganda and financial wars against Russia and China, the author said.
"Wall Street should be worried about the economic problems at home in the US instead of trying to undermine China. The talk about the slowing down of the Chinese economy in part is distraction," he wrote.
Last March, the Russian Central Bank sold nearly 20 percent of its $125 billion US treasuries holdings. China is also aggressively selling its US treasuries holding which currently exceed $1 trillion.
In August, China’s central bank put ruble into circulation in Suifenhe City, Heilongjiang Province, launching a pilot ruble-yuan program. Ruble was introduced to replace US dollar.
In the first half of 2015, Russia-China yuan-denominated payments reached $1.32 billion, according to the Chinese Central Bank.
Recently, Russia drafted a bill aimed at eliminating dollar and euro payments in trade between CIS countries.
According to a Kremlin statement, the legislation "would help expand the use if national currencies in foreign trade payments and financial services and thus create preconditions for greater liquidity of domestic currency markets."
Russian and China are increasingly trading in their national currencies to increase economic stability and reduce dependency on dollar and euro.
If the trend includes enough other countries the dollar strength will be significantly weakened and US imperial ambitions will be curbed, the article assumes.
This is why I think the race for Disruptive Strategic Materials is on and I also predict Russia is going to be looking to purchase Graphene!
I thought the RACE for SL VEIN would start around 2016 first quarter but because of the economic battles and Macro-Econ-Politics I think People aware of the Disruptive Importance of these commodities are not going to wait. SL Vein is more of a safe haven then Gold in my opinion...
I think Sri Lanka is in a Prime Safe Haven Position. The new Maritime Silk Road linking into Sri Lanka is no surprise.
I predict allot of the people in China/Russia are full steam ahead into the 2D reformation of Military; Space; Phones; Graphene Chips; Batteries; EV's; and so much more ! China is rebuilding its navy because they are going to be able to off the Asian nations security replacing America and protect the Trade.
MRL Corporation has an amazing pool of people to hire to get the job done in my opinion. In my opinion those who don't take up the CR are going to find others hovering it up happily...
I think both the Holders and Sophisticated Investors will be happy
