China’s SWIFT alternative may undercut US sanctions

[MH.Yang]

As of June 30 last year, 32 percent of Russia’s foreign currency reserves were euros and 16 percent were U.S. dollars, according to its central bank. About 7 percent were British pounds, 13 percent Chinese renminbi and 22 percent monetary gold. The remainder was held in other currencies.

https://www.washingtonpost.com/business/2022/02/26/russia-central-bank-white-house/

What does that mean? Russian gold has long returned home, and Russian dollars and euros are stored in the Bank of China.

 

[Communism]

What does that mean? Russian gold has long returned home, and Russian dollars and euros are stored in the Bank of China.

That's not how currencies work.

All currencies that are not physical paper are stored on their respective nation's ledgers.

USD is stored at NY Fed.

Euro is stored at ECB.

JPY is stored at JCB.

Unless you are telling me there are billions of dollars and euros worth of physical bills stored at the Bank of China earmarked to the Russian Central Bank.

 

[Viet]

What does that mean? Russian gold has long returned home, and Russian dollars and euros are stored in the Bank of China.

Russia currency crashed by 30 pct in overnight trading. what I predicted. Putin needs urgently the dollars. You must transfer the dollars immediately back to Russia. Otherwise that will be a bloodshed this week for the ruble. Russia will land in poverty as savings will disappear.

Putin can’t sell gold immediately the gold price will crash as panic trading.

 

[MH.Yang]

That's not how currencies work.

All currencies that are not physical paper are stored on their respective nation's ledgers.

USD is stored at NY Fed.

Euro is stored at ECB.

JPY is stored at JCB.

Unless you are telling me there are billions of dollars and euros worth of physical bills stored at the Bank of China earmarked to the Russian Central Bank.

Thank you. I learned.
However, in July 2017, there were news reports that the Russian state welfare fund transferred $10 billion and £ 2.1 billion to China. How does this work?

 

[Communism]

Thank you. I learned.
However, in July 2017, there were news reports that the Russian state welfare fund transferred $10 billion and £ 2.1 billion to China. How does this work?

Unless they are physical bills, then all they are is a "Bank of China" entry at the New York Fed or the ECB ledger.

For example, the US or EU could simply deduct that amount from the "Bank of China" entry with a few keystrokes.

 

[Indos]

War mongering PDF members will likely to see their country economic suffers

$125 Oil Could Push The U.S. Into A Recession​

By Alex Kimani - Feb 27, 2022, 4:00 PM CST

• Inflation is now sitting at a four-decade high of 7.5%, but some fear it could get even worse.
• Russia’s push into Ukraine has forced Western allies to slap major economic sanctions on Russian banks and financial institutions.
• Sanctions on Russian energy could send oil prices above $125 per barrel which would almost certainly stall economic growth and lead to rising unemployment.

$125 Oil Could Push The U.S. Into A Recession | OilPrice.com

High oil prices and rising inflation have plagued the U.S. Fed, and now analysts are expecting the situation to become even more dire due to the ongoing Ukraine crisis

oilprice.com

 

[Indos]

I dont think it will be 125 USD per barrel. particularly if Iran oil and gas is unleashed and deal is reach, but it likely be stay at 98-110 USD per barrel.

All other energy commodities will likey be staying high like gas and coal, including palm oil, gold, and nickel,

Wheat eating countries will also suffer

 

[Song Hong]

War mongering PDF members will likely to see their country economic suffers

$125 Oil Could Push The U.S. Into A Recession​

By Alex Kimani - Feb 27, 2022, 4:00 PM CST

• Inflation is now sitting at a four-decade high of 7.5%, but some fear it could get even worse.
• Russia’s push into Ukraine has forced Western allies to slap major economic sanctions on Russian banks and financial institutions.
• Sanctions on Russian energy could send oil prices above $125 per barrel which would almost certainly stall economic growth and lead to rising unemployment.

$125 Oil Could Push The U.S. Into A Recession | OilPrice.com

High oil prices and rising inflation have plagued the U.S. Fed, and now analysts are expecting the situation to become even more dire due to the ongoing Ukraine crisis

oilprice.com

125 oil affect China more than US. US is now oil exporter. China is biggest importer. High oil price transfer wealth from people to the US oil elites. The people will suffer. Though US is on the whole richer, only the rich is richer but the onus on poor is heavier.

 

[Indos]

125 oil affect China more than US. US is now oil exporter. China is biggest importer. High oil price transfer wealth from people to the US oil elites. The people will suffer. Though US is on the whole richer, only the rich is richer but the onus on poor is heavier.

US oil demand outpace its oil production despite USA is the biggest oil producer in the world.

It will likely affect Europe and other countries who dont produce enough oil/gas/ and coal.

In Asia, it is India who will get the biggest hit, followed by Thailand, Philippine and others

 

[Han Patriot]

You underestimate Russia.
Of course, Russia is not China, but Russia also is not Vietnam.

Russia has a complete industrial system and the world's largest resources. Even if foreign trade is completely closed, Russians can live a good life.
We Chinese only opened a window for our neighbors in the north, they don't rely on us. On the contrary, we rely on Russian resources.

Exactly, what are dollars but printed paper.

Russia is finished no matter how this war plays out. Putin gives up the West and surrenders the fate of his country into the hands of Beijing.
Why I say that? Yes unfortunately China is big winner Vietnam is finished too. Russia will stop delivery weapons or submarines to us. We will become slaves. Very regrettable.

I don't think Russia is finished, I think this is a calculated move. Yes China is the biggest winner and yes Vietnam is fcked.

Unless they are physical bills, then all they are is a "Bank of China" entry at the New York Fed or the ECB ledger.

For example, the US or EU could simply deduct that amount from the "Bank of China" entry with a few keystrokes.

And yet they didn't do that..... Dude until now SWIFT is still open TO Russia, only some banks are affected, they need to maintain at least some banks open so taht the oil trade doesn't stop.

Russia currency crashed by 30 pct in overnight trading. what I predicted. Putin needs urgently the dollars. You must transfer the dollars immediately back to Russia. Otherwise that will be a bloodshed this week for the ruble. Russia will land in poverty as savings will disappear.

Putin can’t sell gold immediately the gold price will crash as panic trading.

I don't think you underatand how money works. Russia is an exporter and they don't import much. They don't need so much dollars and had been accumulating it. You only need dollars to buy stuff from outside, ruble is only devaluing against dollar not againts its own economy.

 

[Communism]

You are behind the curve.

Russia's Central Bank Reserves were frozen/confiscated in USD/Euro/JPY, etc.

This is the "nuclear option" and goes beyond just "cutting off from swift".

This means that Russia has no reason to ever use those currencies ever again in the future.

The question now is if Russia will ask Europe to pay them in Gold or RMB for their resource exports.

https://twitter.com/x/status/1497696378461593605

 

[casual]

You are behind the curve.

Russia's Central Bank Reserves were frozen/confiscated in USD/Euro/JPY, etc.

This is the "nuclear option" and goes beyond just "cutting off from swift".

This means that Russia has no reason to ever use those currencies ever again in the future.

The question now is if Russia will ask Europe to pay them in Gold or RMB for their resource exports.

https://twitter.com/x/status/1497696378461593605

it's way too difficult to transact in gold. so that just leaves RMB

 

[beijingwalker]

The west will soon find out they need Russia more than Russia needs them. By pushing Russia mre close to China, the west is shooting themselves in the foot with a machine gun.

 

[casual]

The west will soon find out they need Russia more than Russia needs them. By pushing Russia mre close to China, the west is shooting themselves in the foot with a machine gun.

Europe needs Russia, US doesn't.

 

[Viet]

We will see energy price shock Tomorrow as Market open again, this will lead to many stock market down Tomorrow, some stock market like belong to Indian is even still suspended until now.

Commodity prices will likely to soar, and we should watch what will happen Tomorrow

The price of energy will hit the roof. Russia can’t deliver because of sanctions.

Europe needs Russia, US doesn't.

Only energy, Russia economy is about of Spain it is very small. Living standard about of Romania, very low. The US wants to impose total ban on chips exports then they realized Russia market for chips is about 0.1 percent, almost zero.