Ending dollar dominance in world market | Updates

[Muhammed45]

China's launch of 'petro-yuan' in two months sounds death knell for dollar's dominance
Published time: 25 Oct, 2017 09:58Edited time: 25 Oct, 2017 10:05
Get short URL

© Paul Yeung / Reuters
#Russia, #China, #Iran move oil trade away from US dollar – Jim Rogers https://t.co/zAWwWmjFiM

— RT (@RT_com) September 15, 2017
Earlier this year, the Chinese government announced plans to start a crude oil futures contract priced in yuan and convertible into gold. The contract will enable the country's trading partners to pay with gold or to convert yuan into gold without the necessity to keep money in Chinese assets or turn it into US dollars.

The new benchmark will reportedly allow exporters, such as Russia, Iran or Venezuela to avoid US sanctions by trading oil in yuan.

Venezuela ditches dollar for oil payments to dodge US penalties https://t.co/3erdJBw6yM

— RT (@RT_com) September 14, 2017
The analyst said the new contract would be able to serve as a hedging tool for Chinese corporations, as well as support the government’s broader plans to extend the use of the national currency in trade settlement.

According to Levinson, Chinese companies might grow into anchor investors in Saudi Arabia’s initial public offering of its national oil giant, Saudi Aramco.

#China could shatter petrodollar by compelling #SaudiArabia to trade oil in yuan https://t.co/rsqmY5VQZJpic.twitter.com/7hy8i4IVL5

— RT (@RT_com) October 11, 2017
At the same time, some analysts are skeptical of China’s ambitious plan to create its own benchmark.

“Game changer it is not — at least not yet. But it is another indicator of the beginning of the glacial, and I emphasize the word glacial, decline of the dollar,” said Gal Luft, co-director of the Institute for the Analysis of Global Security, as quoted by CNBC.

Ditching the $: Joint Russia-Iran bank to conduct business in national currencies https://t.co/msmRE5LWnXpic.twitter.com/TSSQc69Fdp

— RT (@RT_com) September 15, 2016
The end of US dollar hegemony has been a consistent message from Russian President Vladimir Putin.

“Russia shares the BRICS countries’ concerns over the unfairness of the global financial and economic architecture, which does not give due regard to the growing weight of the emerging economies. We are ready to work together with our partners to promote international financial regulatory reforms and to overcome the excessive domination of the limited number of reserve currencies,” Putin said two months ago during the BRICs summit in Xiamen.


https://www.rt.com/business/407704-china-oil-plans-yuan-contract/

 

[Muhammed45]

Russia & China to extend currency swap agreement to lessen dollar dependence
Published time: 31 Oct, 2017 09:46Edited time: 31 Oct, 2017 09:53
Get short URL

© Petar Kujundzic / Reuters

"At present, financial regulators of the two countries are working on extending the bilateral currency swap agreement for the next three years,” he said as Russian Prime Minister Dmitry Medvedev heads off on an official visit to China.

Prikhodko added that settlements in national currencies are gradually increasing. “In 2016, the share of national currencies in payments for exports of Russian goods and services amounted to 13 percent, imports, 16 percent. In the first quarter of 2017, these figures rose to 16 percent and 18 percent, respectively," he said.

China has developed a system of cross-border payments in yuan, the China International Payments System (CIPS), to expand the use of its national currency in international payments, according to Prikhodko. He said some Russian banks have already joined CIPS.

READ MORE: Russia to issue 10mn national payment cards

The Russian National Card Payment System (NSPK) and China's UnionPay have agreed to process domestic Russian transactions using UnionPay cards in NSPK. This year the two countries plan a pilot project of UnionPay and Rosselkhozbank for issuing co-badging cards with Russia's Mir payment system.

Russia’s biggest bank launches financing in Chinese yuan http://t.co/2cSyHORExNpic.twitter.com/0zHW05CAcQ

— RT (@RT_com) November 19, 2014
In 2014, Russian and Chinese central banks signed a three-year ruble-yuan currency swap deal worth up to $25 billion, with the aim of boosting trade using national currencies and lessen dependence on the dollar and euro. Russia’s largest lender, Sberbank became the first bank in the country to start issuing credit guarantees denominated in Chinese yuan.

READ MORE: Defying the dollar Russia & China agree currency swap worth over $20bn

Trade between Moscow and Beijing grew 2.2 percent last year to $69.52 billion. The countries have set a goal to boost trade to $80 billion by 2018 and $200 billion by 2020.

https://www.rt.com/business/408305-russia-china-currency-swap/

knell for dollar's dominance

Dollar should not dominate the world – Russian PM Medvedev
Published time: 1 Nov, 2017 10:00
Get short URL

© Thomas White / Reuters
Russia & China to extend currency swap agreement to lessen dollar dependence
Medvedev said that no matter how strong the American economy, it also faces problems from time to time. "As a result, the entire financial world is shaken. A more balanced international financial system is better for everyone," the prime minister said.

According to Medvedev, Russia is pleased with the growing role of the Chinese yuan in global settlements, as it represents one of the world's largest economies.

In May, Russia and China established an investment fund worth 68 billion yuan ($10 billion).The countries also plan to extend the bilateral currency swap agreement for another three years. In 2014, Russia and China agreed on a 3-year ruble-yuan currency swap deal of up to $25 billion.

China has been pushing for a greater use of the yuan in oil settlements. As the country has become the largest oil importer overtaking the United States, it can now dictate rules, experts note.

The chief economist and managing director at High Frequency Economics Carl Weinberg has predicted that “Chinese [oil] demand will dwarf US demand," and Beijing is likely to “compel” Saudi Arabia to sell crude oil in yuan, a move to be followed by others.


https://www.rt.com/business/408425-dollar-dominance-russia-medvedev-yuan/

 

[Maxpane]

thank God . i hope i can see end of dollar's influence in this world in my life

 

[Muhammed45]

thank God . i hope i can see end of dollar's influence in this world in my life

If China dominates the markets of Euro zone, that's quite possible. Meanwhile KSA is coming closer to China, not a bad news at all :


Dollar value drop? China will 'compel' Saudi Arabia to trade oil in yuan
Sam Meredith, CNBCPublished 2:15 p.m. ET Oct. 11, 2017

The U.S. reportedly wants to cut off oil and natural gas exports to North Korea, but China and Russia could veto that plan. Video provided by Newsy Newslook

TWEET 1287LINKEDIN 2COMMENTEMAILMORE
China will "compel" Saudi Arabia to trade oil in yuan and, when this happens, the rest of the oil market will follow suit and abandon the U.S. dollar as the world's reserve currency, a leading economist told CNBC on Monday.

Carl Weinberg, chief economist and managing director at High Frequency Economics, said Beijing stands to become the most dominant global player in oil demand since China usurped the U.S. as the "biggest oil importer on the planet."

Saudi Arabia has "to pay attention to this because even as much as one or two years from now, Chinese demand will dwarf U.S. demand," Weinberg said.

"I believe that yuan pricing of oil is coming and as soon as the Saudis move to accept it — as the Chinese will compel them to do — then the rest of the oil market will move along with them."

Crux of the petrodollar
In recent years, several nations opposed to the dollar being the world's reserve currency have progressively sought to try and abandon it.


For instance, Russia and China have sought to operate in a non-dollar environment when trading oil. Both countries have also increased their efforts to mine and acquire physical gold if, or perhaps when, the dollar collapses.

OPEC kingpin Saudi Arabia is at the crux of the petrodollar.

Since a 1974 agreement between U.S. President Richard Nixon and Saudi King Faisal, Saudi Arabia has accepted payments for nearly all of its oil exports in dollars. However, as China imports more and more oil from countries across the world, the idea of having to purchase that same oil in dollars has become increasingly irritable to Beijing.


In recent years, China has sought to ratchet up the pressure on Saudi Arabia over the form of currency in which their oil trade is conducted, with Riyadh now enjoying less and less oil purchases from Beijing.

More: OPEC chief urges U.S. shale to curb oil output

More: Russia and China continue to boost oil ties

More: Most ‘competitive’ oil in the world befuddles analysts

What does it mean for the dollar?
When asked what it could mean for the dollar should the oil market move oil trade out of the U.S. currency and into the yuan, Weinberg said the world's transaction currency would suffer "lesser demand for U.S. securities across the board."

"Moving oil trade out of dollars into yuan will take right now between $600 billion and $800 billion worth of transactions out of the dollar… (That) means a stronger demand for things in China, whether it's securities or whether it's goods and services. It is a growth plus for China and that's why they want this to happen."

© CNBC is a USA TODAY content partner offering financial news and commentary. Its content is produced independently of USA TODAY.

Chinese officials say they're deciding on a time frame to ban gas and diesel vehicles in favor of electric and intelligent cars. Video provided by Newsy Newslook


https://www.usatoday.com/story/mone...compel-saudi-arabia-trade-oil-yuan/754788001/

 

[litman]

thank God . i hope i can see end of dollar's influence in this world in my life

but it will not go down without destruction of the world. it wont be peaceful at all.

 

[Muhammed45]

The rise of the petro-yuan

• Nick Cunningham, OilPrice.com
  
  

• Oct. 29, 2017, 8:06 PM
• 4,141

• FACEBOOK
• LINKEDIN
• TWITTER
• EMAIL
• reports indicate that China is set to introduce an oil benchmark priced in yuan in the coming months.
  
  For China, there are a lot of upsides to this gambit. An oil futures market based in yuan will stimulate demand for the Chinese currency, which China believes will lend it strategic clout. That money is also more likely to be recycled back into the Chinese economy. The U.S. has been able to run huge budget deficits, borrowing money at extremely low rates because of the demand for its currency. Petrodollars continuously flow back into the U.S. economy, creating investment and economic growth that might not otherwise occur. The dollar has also long been one of the premier safe havens for investors around the world.
  
  
  
  
  China hopes to replicate this dynamic. And as the largest oil importer in the world, there is a great deal of logic in having oil contracts trade in yuan.
  
  But it won’t be easy to unseat the greenback. The plan is to launch an oil futures contract on the Shanghai International Energy Exchange (INE), but there are obstacles in convincing large oil producers and consumers in using the yuan and investing in the Shanghai benchmark. Without some major countries participating, like, say, Saudi Arabia or Russia, it will be difficult to create a market that is deep and liquid enough to make a difference.
  
  Moreover, because the yuan does not float freely – it is fixed to the dollar and adjusted daily – major investors will be wary of trading in the Chinese currency. "My biggest reservations are the role of the Chinese central government, potential state intervention and favoritism toward Chinese companies," said John Driscoll, director of JTD Energy Services, according to CNBC. On the other hand, China has slowly loosened its grip on its currency.
  
  "Game changer it is not — at least not yet," Gal Luft, co-director of the Institute for the Analysis of Global Security, told CNBC. "But it is another indicator of the beginning of the glacial, and I emphasize the word glacial, decline of the dollar."
  
  Others see much more dramatic change coming from the launching of the Shanghai benchmark. Juerg Kiener, managing director and chief investment officer of asset manager Swiss Asia Capital, told CNBC that the petro-yuan is “well-advanced” and already “structurally in place.”
  
  Up until now, there have been some transactions in yuan, but only in trade specifically with China, and typically only with some smaller countries. Iran in particular was an early adopter of yuan-based oil sales, an unsurprising fact given Tehran’s eagerness to avoid the long arm of the U.S. Treasury department.
  
  A more significant development was Russia agreeing to some yuan-based oil trade in 2015, also the result of U.S. sanctions.
  
  Many believe that key to the success of the benchmark is convincing a country like Saudi Arabia to participate. Saudi Arabia is one of the largest oil producers in the world, and sells a little more than 1 million barrels of oil each day to China. Russia is still the top supplier to China, exporting 1.545 mb/d in September, and in fact, Russia has been taking market share away from Saudi Arabia in China. If Riyadh wants to avoid losing more ground, the thinking goes, it may need to agree to yuan-denominated sales. Recent reports that China’s large state-owned oil companies are considering an outright purchase of 5 percent of Saudi Aramco, a move that Saudi Arabia is rumored to be considering in lieu of the Aramco IPO, should be seen in this context.
  
  "I believe that yuan pricing of oil is coming and as soon as the Saudis move to accept it — as the Chinese will compel them to do — then the rest of the oil market will move along with them,” Carl Weinberg, chief economist at High Frequency Economics, said on CNBC earlier this month.
  
  At that point, things would really start to change, and the dollar would start to lose its top status. Some see that as unlikely, as Saudi Arabia would likely be met with blowback from the U.S. But it would be a difficult choice for Riyadh – lose the Chinese market or spark the ire of Washington.
  
  It may not happen right away, but the launching of the crude oil benchmark on the Shanghai exchange could mark the beginning of the end of the petrodollar.
  
  Get the latest Oil WTI price here.
  
  Read the original article on OilPrice.com. Copyright 2017.
  

http://www.businessinsider.com/china-wants-yuan-as-oil-market-currency-2017-10

 

[Maxpane]

but it will not go down without destruction of the world. it wont be peaceful at all.

i dnt think it will bring destruction sir . i believe country's will move toward their local currency's slowly but it will take many years

The rise of the petro-yuan

• Nick Cunningham, OilPrice.com
  
  

• Oct. 29, 2017, 8:06 PM
• 4,141

• FACEBOOK
• LINKEDIN
• TWITTER
• EMAIL
• reports indicate that China is set to introduce an oil benchmark priced in yuan in the coming months.
  
  For China, there are a lot of upsides to this gambit. An oil futures market based in yuan will stimulate demand for the Chinese currency, which China believes will lend it strategic clout. That money is also more likely to be recycled back into the Chinese economy. The U.S. has been able to run huge budget deficits, borrowing money at extremely low rates because of the demand for its currency. Petrodollars continuously flow back into the U.S. economy, creating investment and economic growth that might not otherwise occur. The dollar has also long been one of the premier safe havens for investors around the world.
  
  
  
  
  China hopes to replicate this dynamic. And as the largest oil importer in the world, there is a great deal of logic in having oil contracts trade in yuan.
  
  But it won’t be easy to unseat the greenback. The plan is to launch an oil futures contract on the Shanghai International Energy Exchange (INE), but there are obstacles in convincing large oil producers and consumers in using the yuan and investing in the Shanghai benchmark. Without some major countries participating, like, say, Saudi Arabia or Russia, it will be difficult to create a market that is deep and liquid enough to make a difference.
  
  Moreover, because the yuan does not float freely – it is fixed to the dollar and adjusted daily – major investors will be wary of trading in the Chinese currency. "My biggest reservations are the role of the Chinese central government, potential state intervention and favoritism toward Chinese companies," said John Driscoll, director of JTD Energy Services, according to CNBC. On the other hand, China has slowly loosened its grip on its currency.
  
  "Game changer it is not — at least not yet," Gal Luft, co-director of the Institute for the Analysis of Global Security, told CNBC. "But it is another indicator of the beginning of the glacial, and I emphasize the word glacial, decline of the dollar."
  
  Others see much more dramatic change coming from the launching of the Shanghai benchmark. Juerg Kiener, managing director and chief investment officer of asset manager Swiss Asia Capital, told CNBC that the petro-yuan is “well-advanced” and already “structurally in place.”
  
  Up until now, there have been some transactions in yuan, but only in trade specifically with China, and typically only with some smaller countries. Iran in particular was an early adopter of yuan-based oil sales, an unsurprising fact given Tehran’s eagerness to avoid the long arm of the U.S. Treasury department.
  
  A more significant development was Russia agreeing to some yuan-based oil trade in 2015, also the result of U.S. sanctions.
  
  Many believe that key to the success of the benchmark is convincing a country like Saudi Arabia to participate. Saudi Arabia is one of the largest oil producers in the world, and sells a little more than 1 million barrels of oil each day to China. Russia is still the top supplier to China, exporting 1.545 mb/d in September, and in fact, Russia has been taking market share away from Saudi Arabia in China. If Riyadh wants to avoid losing more ground, the thinking goes, it may need to agree to yuan-denominated sales. Recent reports that China’s large state-owned oil companies are considering an outright purchase of 5 percent of Saudi Aramco, a move that Saudi Arabia is rumored to be considering in lieu of the Aramco IPO, should be seen in this context.
  
  "I believe that yuan pricing of oil is coming and as soon as the Saudis move to accept it — as the Chinese will compel them to do — then the rest of the oil market will move along with them,” Carl Weinberg, chief economist at High Frequency Economics, said on CNBC earlier this month.
  
  At that point, things would really start to change, and the dollar would start to lose its top status. Some see that as unlikely, as Saudi Arabia would likely be met with blowback from the U.S. But it would be a difficult choice for Riyadh – lose the Chinese market or spark the ire of Washington.
  
  It may not happen right away, but the launching of the crude oil benchmark on the Shanghai exchange could mark the beginning of the end of the petrodollar.
  
  Get the latest Oil WTI price here.
  
  Read the original article on OilPrice.com. Copyright 2017.

http://www.businessinsider.com/china-wants-yuan-as-oil-market-currency-2017

The rise of the petro-yuan

• Nick Cunningham, OilPrice.com
  
  

• Oct. 29, 2017, 8:06 PM
• 4,141

• FACEBOOK
• LINKEDIN
• TWITTER
• EMAIL
• reports indicate that China is set to introduce an oil benchmark priced in yuan in the coming months.
  
  For China, there are a lot of upsides to this gambit. An oil futures market based in yuan will stimulate demand for the Chinese currency, which China believes will lend it strategic clout. That money is also more likely to be recycled back into the Chinese economy. The U.S. has been able to run huge budget deficits, borrowing money at extremely low rates because of the demand for its currency. Petrodollars continuously flow back into the U.S. economy, creating investment and economic growth that might not otherwise occur. The dollar has also long been one of the premier safe havens for investors around the world.
  
  
  
  
  China hopes to replicate this dynamic. And as the largest oil importer in the world, there is a great deal of logic in having oil contracts trade in yuan.
  
  But it won’t be easy to unseat the greenback. The plan is to launch an oil futures contract on the Shanghai International Energy Exchange (INE), but there are obstacles in convincing large oil producers and consumers in using the yuan and investing in the Shanghai benchmark. Without some major countries participating, like, say, Saudi Arabia or Russia, it will be difficult to create a market that is deep and liquid enough to make a difference.
  
  Moreover, because the yuan does not float freely – it is fixed to the dollar and adjusted daily – major investors will be wary of trading in the Chinese currency. "My biggest reservations are the role of the Chinese central government, potential state intervention and favoritism toward Chinese companies," said John Driscoll, director of JTD Energy Services, according to CNBC. On the other hand, China has slowly loosened its grip on its currency.
  
  "Game changer it is not — at least not yet," Gal Luft, co-director of the Institute for the Analysis of Global Security, told CNBC. "But it is another indicator of the beginning of the glacial, and I emphasize the word glacial, decline of the dollar."
  
  Others see much more dramatic change coming from the launching of the Shanghai benchmark. Juerg Kiener, managing director and chief investment officer of asset manager Swiss Asia Capital, told CNBC that the petro-yuan is “well-advanced” and already “structurally in place.”
  
  Up until now, there have been some transactions in yuan, but only in trade specifically with China, and typically only with some smaller countries. Iran in particular was an early adopter of yuan-based oil sales, an unsurprising fact given Tehran’s eagerness to avoid the long arm of the U.S. Treasury department.
  
  A more significant development was Russia agreeing to some yuan-based oil trade in 2015, also the result of U.S. sanctions.
  
  Many believe that key to the success of the benchmark is convincing a country like Saudi Arabia to participate. Saudi Arabia is one of the largest oil producers in the world, and sells a little more than 1 million barrels of oil each day to China. Russia is still the top supplier to China, exporting 1.545 mb/d in September, and in fact, Russia has been taking market share away from Saudi Arabia in China. If Riyadh wants to avoid losing more ground, the thinking goes, it may need to agree to yuan-denominated sales. Recent reports that China’s large state-owned oil companies are considering an outright purchase of 5 percent of Saudi Aramco, a move that Saudi Arabia is rumored to be considering in lieu of the Aramco IPO, should be seen in this context.
  
  "I believe that yuan pricing of oil is coming and as soon as the Saudis move to accept it — as the Chinese will compel them to do — then the rest of the oil market will move along with them,” Carl Weinberg, chief economist at High Frequency Economics, said on CNBC earlier this month.
  
  At that point, things would really start to change, and the dollar would start to lose its top status. Some see that as unlikely, as Saudi Arabia would likely be met with blowback from the U.S. But it would be a difficult choice for Riyadh – lose the Chinese market or spark the ire of Washington.
  
  It may not happen right away, but the launching of the crude oil benchmark on the Shanghai exchange could mark the beginning of the end of the petrodollar.
  
  Get the latest Oil WTI price here.
  
  Read the original article on OilPrice.com. Copyright 2017.

http://www.businessinsider.com/china-wants-yuan-as-oil-market-currency-2017-10

sir whats your opinion? will saudi arabia accept it?

 

[cloud4000]

Another meaningless thread about the collapse -- actually, a wish -- of US dollar. If may happen, or it may not happen. Even if China overtakes US economically, doesn't mean the collapse of the US dollar. But it's nice to have dreams.

 

[litman]

i dnt think it will bring destruction sir . i believe country's will move toward their local currency's slowly but it will take many years



sir whats your opinion? will saudi arabia accept it?

decline of petro dollar means decline of US economy. the strongest military in the world wont like this idea.

 

[Maxpane]

dream is necessary to get goal

 

[Muhammed45]

sir whats your opinion? will saudi arabia accept it?

If China-Russia had enthusiasm, then why not. We have the control of Persian gulf KSA has to comply.

 

[Maxpane]

decline of petro dollar means decline of US economy. the strongest military in the world wont like this idea.

sir but now it not only one . there are many emerging economies in the world which can challenge her authority . in asia china russia and india are the real contender

If China-Russia had enthusiasm, then why not. We have the control of Persian gulf KSA has to comply.

agree sir . hope for the best

 

[cloud4000]

decline of petro dollar means decline of US economy. the strongest military in the world wont like this idea.

Why would decline of the petro dollar impact US economy? Please explain.

If China-Russia had enthusiasm, then why not. We have the control of Persian gulf KSA has to comply.

Love you enthusiasm even if it's delusional.

 

[xyxmt]

Another meaningless thread about the collapse -- actually, a wish -- of US dollar. If may happen, or it may not happen. Even if China overtakes US economically, doesn't mean the collapse of the US dollar. But it's nice to have dreams.

Collapse of Petro-dollar not the Dollar as currency

 

[VCheng]

Another meaningless thread about the collapse -- actually, a wish -- of US dollar. If may happen, or it may not happen. Even if China overtakes US economically, doesn't mean the collapse of the US dollar. But it's nice to have dreams.

I got nothing to say, but may be @Hamartia Antidote can add something?