Name: DE-DOLLARIZATION
Uploaded: 2022-06-30T18:02:42+00:00
Duration: 6 min 44 s
Description: DE-DOLLARIZATION June 30, 2022 The Dive with Jackson Hinkle The U.S. dollar "was" the most important unit of account for international trade, the main medium of exchange for settling international tra

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DE-DOLLARIZATION

June 30, 2022

The Dive with Jackson Hinkle

The U.S. dollar "was" the most important unit of account for international trade, the main medium of exchange for settling international transactions, and the store of value for central banks.

Russia sees diversification from the dollar and into gold and other currencies, as a way of skirting trade restrictions.

In 2021, China trimmed its holdings of US Treasuries for four straight months, in what analysts called a move to prevent potential adverse impact from escalating China-US tensions.

China really started to move away from the dollar in 2014. China agreed with Brazil on a $29 billion currency swap, to promote the Chinese yuan as a reserve currency. The Chinese and Russian central banks signed an agreement on yuan-rouble swaps to double trade between the two countries. The $150 billion deal is a way for Russia to move away from US dollar-dominated settlements.

A few years ago China came up with a new crude oil futures contract, priced in yuan and convertible into gold. The Shanghai-based contract allows oil exporters like Russia and Iran to dodge US sanctions against them by trading oil in yuan rather than US dollars.

More evidence of Chinese and Russian de-dollarization concerns the SWIFT system of international banking transactions.

China has also developed an alternative to SWIFT, in 2015 launching the Cross-Border Interbank Payment System (CPS) to help internationalize the yuan.

The U.S. plans against Russia has backfired. Not only have the sanctions failed to stop Russia, the high energy prices resulting from the war, have boosted the rouble so that it is now the best-performing currency against the dollar. Russia's energy exports may have declined due to Western sanctions but their value has increased. As buyers of Russian oil and gas lessen, others are stepping into the breach, including India. More importantly, the sanctions are pushing Russia closer to China, American's main economic, political and military adversary.

Normally a country facing economic sanctions would see its currency take a nose-dive. Not so for Russia. The main reason, of course, is energy prices. Russia is a major oil producer and supplies 40% of Europe's natural gas. This hasn't stopped purchases of Russian oil, gas, wheat, fertilizer, and minerals such as nickel and palladium.

Economic power had begun shifting to the East long before the U.S. and NATO created conflict in Ukraine, with China taking steps to make itself independent of the US, for example through its Belt and Road Initiative, and purchases of overseas mineral deposits such as copper, lithium and cobalt.

President Vladimir Putin said, that the BRICS countries, Brazil, Russia, India, China, and South Africa, are currently working on setting up a new global reserve currency.

"The issue of creating an international reserve currency based on a basket of currencies of our countries is being worked out," he said at the BRICS business forum.

According to the Russian president, the member states are also developing reliable alternative mechanisms for international payments.

Earlier, the group said it was working on establishing a joint payment network to cut reliance on the Western financial system. The BRICS countries have been also boosting the use of local currencies in mutual trade.

Russia has been trying to strengthen and expand its alliances with nations in Asia, Africa and Latin America. The report suggests that China has also invited 13 guest nations to the event to demonstrate the group's growing global influence. Among these countries are Egypt, Fiji, Algeria, Cambodia, Thailand, Indonesia and Malaysia.

During the BRICS summit on June 22nd, 2022, Putin said that the five-member group was working on setting up a new global reserve currency "based on a basket of currencies of our countries."

Original: https://youtu.be/wJ14xYKKe8g

https://aheadoftheherd.com/us-sanctions-against-russia-accelerating-de-dollarization/

https://www.rt.com/business/557627-brics-developing-global-reserve-currency/

https://www.rt.com/news/558138-russia-china-brics-g-7-alternative/

https://www.rt.com/news/558031-china-g7-brics-tweet/

#JacksonHinkle #Russia #BRICS #USDollarCollapse #GreatReset #Currency

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