• Tuesday, September 17, 2019

Russia undermines US dollar dominance by shifting trade to local currencies

Discussion in 'World Affairs' started by Beidou2020, Aug 5, 2019.

  1. Beidou2020

    Beidou2020 SENIOR MEMBER

    Messages:
    4,645
    Joined:
    Dec 3, 2013
    Ratings:
    +2 / 12,102 / -37
    Country:
    China
    Location:
    China
    Russia has nearly halved the share of the US dollar in trade with India and China and continued to reduce the use of the greenback in deals with the EU, sticking to its pledge to de-dollarize the economy.

    It’s the first time that the dollar has lost the leading position in Russia’s export trade with its main trading partners. As of the end of the first quarter of 2019, more than 75 percent of Russian exports to India were paid for in rubles. Local currency trade has nearly quadrupled compared to the same period last year and more than doubled since the end of 2018.

    In settlements with China, the total share of rubles and euros overtook the dollar. Thus, transactions in euros skyrocketed from 0.7 percent in the first three months last year to the current 37.6 percent, while the share of rubles rose almost three percent to 9.6 percent. Meanwhile, the share of the greenback over the same period dropped from more than 87 percent to 45.7 percent.

    Central bank figures also show that Russia is successfully shifting away from the greenback in trade with allied emerging economies – Brazil, Russia, India, China, and South Africa (BRICS). Since the end of 2018, settlements for Russian exports to these countries in dollars dropped by nearly a third to 40.6 percent, while ruble and euro transactions jumped to 23.1 and 30.7 percent respectively.

    The euro’s share has been gaining on the dollar in trade between Russia and the European Union. The single European currency now accounts for 42.3 percent of EU-Russia trade, against 46.6 percent in US dollars.

    Speaking to RT last year, Russian Economic Development Minister Maxim Oreshkin called for a switch to the euro in bilateral trade, as neither Russia nor EU states are dollar-based countries.

    Apart from getting rid of the dollar in trade, the Central Bank of Russia has been dumping its holdings of US debt, cutting its stockpile of Treasury bills to a 12-year low.

    Last month, Wall Street bank JPMorgan Chase predicted the end of US dollar dominance in the near future. The bank said that the global economy will shift to “a system where Asia wields greater power,” eroding the greenback’s reserve currency status and setting the grounds for its replacement as the dominant international currency.

    *************************

    Good to see more countries switch to using their own currencies in bilateral trade. Russia-EU trade should be in euros and rubles. No need to use US dollars when the USA is not involved.
    China-Russia trade should use yuan and rubles.
    US has weaponised the dollar’s role in the global economy and its forcing other countries to use other currencies.
    United States is a destabilising force in the world. More countries are waking up to this fact, including American allies.
     
    • Thanks Thanks x 7
  2. Samlee

    Samlee SENIOR MEMBER

    Messages:
    4,537
    Joined:
    Aug 8, 2010
    Ratings:
    +6 / 5,653 / -0
    Country:
    Pakistan
    Location:
    Pakistan
    This Is What We Should Be Doing
     
    • Thanks Thanks x 3
  3. oprih

    oprih BANNED

    Messages:
    2,855
    Joined:
    Dec 21, 2015
    Ratings:
    +0 / 5,969 / -27
    Country:
    Philippines
    Location:
    Philippines
    Good to see countries cooperating with each other in bringing down the satanic states of murica.
     
    • Thanks Thanks x 6
  4. Hamartia Antidote

    Hamartia Antidote ELITE MEMBER

    Messages:
    16,894
    Joined:
    Nov 17, 2013
    Ratings:
    +25 / 12,491 / -4
    Country:
    United States
    Location:
    United States
    More like why were Russia, India, and China even using the dollar in the first place. Seems between the three of them they simply all agreed their own currencies were nothing more than colored paper with no value so they had to bring in a third party currency.
     
    Last edited: Aug 8, 2019
  5. DejanSRB

    DejanSRB FULL MEMBER

    Messages:
    504
    Joined:
    Sep 10, 2013
    Ratings:
    +3 / 615 / -1
    Country:
    Serbia
    Location:
    Serbia
    Same news every week for past five years.
     
    • Thanks Thanks x 2
  6. AViet

    AViet FULL MEMBER

    Messages:
    1,251
    Joined:
    Dec 11, 2009
    Ratings:
    +1 / 2,586 / -0
    Country:
    Viet Nam
    Location:
    Korea, Republic Of
    The demise of an empire do not happen in one day, or even 10 years. The US is in an irreversible down hill, since all advantages it has enjoyed, except natural resources, to become a superpower, has been gradually disappearing, and the most important is the quality of its people.

    Every time watching an US movie now, I see stupid-looking and arrogant people, whose saying seems only "me, myself, my...". How the US being able to survive in next 50 years in its current form is a clear question to everyone who understand history.
     
    Last edited: Aug 8, 2019
    • Thanks Thanks x 7
  7. Piotr

    Piotr FULL MEMBER

    Messages:
    496
    Joined:
    Jun 22, 2016
    Ratings:
    +3 / 1,415 / -0
    Country:
    Poland
    Location:
    Poland
    US was at it's strongest in the second half of 1940s. In 1950 for example US share of world's car production was 75 %. So US produced thrice more cars than the rest of the world combined. Now US share is less than 12 %. US empire used to be much stronger than it is now.
     
    • Thanks Thanks x 6
  8. oprih

    oprih BANNED

    Messages:
    2,855
    Joined:
    Dec 21, 2015
    Ratings:
    +0 / 5,969 / -27
    Country:
    Philippines
    Location:
    Philippines
    -800 :rofl: