Which countries are dumping the dollar and why?

[AZADPAKISTAN2009]

https://www.rt.com/business/427177-who-why-dumping-us-dollar/

The European Union is considering switching payments from the US dollar to the euro after Washington threatened to target European firms working in Iran, according to reports.
The measure may help the EU to retain one of the world's largest markets, which was opened for trade after the historic nuclear deal signed by Tehran and the P5+1 powers (China, France, Russia, UK, US, plus Germany) in June 2015.

 

[AZADPAKISTAN2009]

https://www.reuters.com/article/us-...ese-currency-to-shun-u-s-dollar-idUSKCN1BQ2D1
Article #1

Article #2
Venezuela publishes oil prices in Chinese currency to shun U.S. dollar


Maduro last week said his government would shun the dollar after the United States announced sanctions that blocked certain financial dealings with Venezuela on accusations that the ruling Socialist Party is undermining democracy.

The global oil industry overwhelmingly uses the dollar for pricing of products.

A weekly Oil Ministry bulletin published on Friday listed September prices in yuan, while including prices from previous weeks and months in dollars.

“This format is the result of the announcement made on Sept 7 by the president ... that Venezuela will implement new strategies to free the country from the tyranny of the dollar,” the ministry wrote in a statement released after the bulletin.

Venezuela’s yuan-based prices appear to be the result of multiplying dollar prices by the dollar/yuan exchange rate.

The price per barrel for the week ending Friday was 306.26 yuan, equivalent to $46.76 based on the exchange rate listed in a footnote. That is up from the previous week’s price of 300.91 yuan, or $46.15 based on the corresponding exchange rate.

The ministry did not respond to an email seeking additional details.

“Nobody is changing contracts for now,” said one oil trader consulted about the issue who asked not to be identified.

“Oil is a commodity that is traded almost exclusive in dollars. PDVSA’s debts, for example, are still denominated in dollars ... and that’s how they’ll have to pay bondholders,” the trader said, referring to the state oil company.

Venezuela’s Dicom currency system on Wednesday temporarily suspended the sale of dollars in order to incorporate other currencies.

Late socialist leader Hugo Chavez during his 14-year rule repeatedly vowed to back away from the dollar, which he said was being printed indiscriminately and was destined to lose its place as the world’s dominant currency.

But Venezuela remains dependent on the greenback given that it conducts ample commercial trade with the United States both through exports of oil and imports of U.S. food and consumer products.

Sanctions by the administration of President Donald Trump blocked U.S. citizens from buying new debt from Venezuela or its state oil company, but did not directly interrupt import and export operations.

Article 3
http://greatlakesvoice.com/the-chinese-yuan-becomes-official-currency-in-zimbabwe/
The Chinese Yuan Becomes Official Currency in Zimbabwe

his is another milestone set by Beijing to be in the court of the great powers, those whose currency refers. As of January 1, the yuan (or remimbi) rub shoulders with the US dollar, South African rand and the Botswana pula in the pockets of the people of Zimbabwe.

It must be said that the situation in this country is special. He has no national currency since 2009. The failed land reform President-dictator Robert Mugabe has led to a severe economic crisis that the government tried to stop cranking printing money.

Result: hyperinflation than 500,000,000,000% according to the IMF. In 2009, the face value of the last break of the Zimbabwean dollar circulated by the national bank of the country had reached a surreal level: 100.000 billion!

This colossal runaway had forced the country to bury the dollar and instead use foreign currencies. This summer, the last ticket holders could exchange to the central bank over $ 1 to 35 million Zimbabwean billion.

An absolutely dizzying exchange rate, Xi Jinping has mobilized to impose the yuan

The yuan, he built several months ago the basket of currencies that make up the foreign exchange reserves of Zimbabwe. And so, in 2016, it can be used for all payments of daily life. To succeed in imposing and its currency, China has multiplied gestures of goodwill. Xi Jinping, the president, whose movements are rare, personally went to Harare, the capital, in early December, with some arguments in the round.

China is now the largest trading partner of the country, agreed to write off a debt of 40 million US dollars was Zimbabwe and pledged a loan of $ 1 billion, with lower rates. Several agreements, mainly aimed to enhance and rebuild infrastructure were also signed.

Inexpensive gestures to the world’s largest economy whose currency gains greater legitimacy in exchange. The side of the Zimbabwean government is a winning transaction.

President Robert Mugabe, speaking Tuesday hope it will facilitate the “cash injection” and even takes to dream that this agreement “could give a boost to the economy.” Shunned by his former Western partners because of its failure to respect human rights, Zimbabwe looks more than ever towards the East.

Dollar becoming a debt ridden problem fast

Remember how certain groups ... did it once before U know those groups

It's always the "Group that sells first one morning"

 

[Hamartia Antidote]

https://www.cnbc.com/2018/02/02/china-currency-yuan-the-rmb-isnt-near-overtaking-the-us-dollar.html

China's currency is still nowhere near overtaking the dollar for global payments

Data released this week from Swift, the global interbank system that transfers trillions of dollars worth of currency daily, showed that just 1.61 percent of domestic and cross-border payments processed in December were denominated in yuan (also known as renminbi, or RMB.)

 

[My-Analogous]

https://www.cnbc.com/2018/02/02/china-currency-yuan-the-rmb-isnt-near-overtaking-the-us-dollar.html

China's currency is still nowhere near overtaking the dollar for global payments

Data released this week from Swift, the global interbank system that transfers trillions of dollars worth of currency daily, showed that just 1.61 percent of domestic and cross-border payments processed in December were denominated in yuan (also known as renminbi, or RMB.)

This is wind of change and soon it will open your eyes

 

[Hamartia Antidote]

This is wind of change and soon it will open your eyes

How soon will that wind of change be? The dollar was supposedly dead ~10 years ago when Russia and Iran said they were both going to stop using it. I've been waiting a long time. How many more years are they going to keep announcing they are dumping the dollar so people like you can get all excited?

2009
https://www.telegraph.co.uk/finance...tin-calls-for-end-of-dollar-stranglehold.html
Russian prime minister Vladimir Putin calls for end of dollar stranglehold

2008
http://rense.com/general80/topple.htm
Iran's Oil Bourse Could Topple The Dollar

 

[xyxmt]

https://www.cnbc.com/2018/02/02/china-currency-yuan-the-rmb-isnt-near-overtaking-the-us-dollar.html

China's currency is still nowhere near overtaking the dollar for global payments

Data released this week from Swift, the global interbank system that transfers trillions of dollars worth of currency daily, showed that just 1.61 percent of domestic and cross-border payments processed in December were denominated in yuan (also known as renminbi, or RMB.)

if you remember China of 20 years ago and compare it to China of Today.

 

[jhungary]

How soon will that wind of change be? The dollar was supposedly dead ~10 years ago when Russia and Iran said they were both going to stop using it. I've been waiting a long time. How many more years are they going to keep announcing they are dumping the dollar so people like you can get all excited?

2009
https://www.telegraph.co.uk/finance...tin-calls-for-end-of-dollar-stranglehold.html
Russian prime minister Vladimir Putin calls for end of dollar stranglehold

2008
http://rense.com/general80/topple.htm
Iran's Oil Bourse Could Topple The Dollar

Remember the same argument in the 90s when they said Yen (not Yuan) will overtake US Dollars as the world currency when the Economy of Japan have been quite impressive. But people who have some sort of Finance and Economy knowledge will tell you replacing any currency to another currency is nearly impossible.

US dollars are currently the biggest influence over other world currency, any sort of change will leads to US dollars being more popular, and to totally overcome US dollars, one would have to have a financial backing that even greater than the current US currency system, and this cannot actually be done unless another world war happens and destroy all US based financial structure.

 

[Gomig-21]

How soon will that wind of change be? The dollar was supposedly dead ~10 years ago when Russia and Iran said they were both going to stop using it.

I was blown away when I saw VICE showing Russian officials wining and dining this guy!

Apparently they're studying the possibility of blockchain & crypto currency being Russia's future and primary means of financing. What times we live in!

 

[Muhammed45]

Which countries are dumping the dollar and why?
Published time: 19 May, 2018 07:23
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The European Union is considering switching payments from the US dollar to the euro after Washington threatened to target European firms working in Iran, according to reports.
The measure may help the EU to retain one of the world's largest markets, which was opened for trade after the historic nuclear deal signed by Tehran and the P5+1 powers (China, France, Russia, UK, US, plus Germany) in June 2015.

Read more
Europe to ditch US dollar in payments for Iranian oil – source
The idea to eliminate the role of the greenback in international settlements is not new. Aside from the EU, a number of nations have been mulling the idea. RT discussed with analysts how realistic the prospect of countries ditching the dollar is.

In light of the recent developments Iran is the most pressured nation to drop the dollar with Tehran having partially adjusted trade without the US currency, Alexandre Kateb, president of Competence Finance SAS, told RT.

"When Iran was previously under sanctions from 2012 to 2015, it established new mechanisms to bypass US-related financial institutions, such as barter exchange and to replace the dollar with other currencies, such as the renminbi in its bilateral trade with China or the euro in its trade with European countries,"the economist said.

At the same time, China's recent move to trade oil in yuan is seen as an initial step to challenging the dollar dominance, Stephen Innes, Head of FX Trading for OANDA in Asia Pacific told RT, stressing that the number of bilateral trade agreements, signed amongst Asia Pacific nations, will settle in yuan.

"Mainland it is laying the ground for the Belt and Road Initiative, and China is even sweetening the pot by offering swap facilities to local countries to promote the use of the yuan," he added.

Experts are unanimous on the point that bi- and multi-lateral pacts between various nations could become the major drivers on the way toward decreasing the dependence on US currency in international trade.

Read more
China urges ditching dollar & euro trade with Russia in favor of national currencies
"This would depend on the leverage the EU, the UK, Russia and China deploy. The likely scenario is diversification – bilateral arrangements between trading partners, or regional arrangements, substituting for multilateral arrangements that supported dollar dominance," Ramaa Vasudevan an Associate Professor at the Department of Economics, Colorado State University told RT.

At the same time, analysts admit that getting rid of the greenback is not an easy task. It took the US dollar nearly a century to unsettle the British pound that had been enjoying its preeminence through the 19th century and the first half of the 20th as the global reserve currency.

"Old habits are hard to break as most of the global hedging is still done on US exchanges like Nymex or ICE," Innes said. "The issues are working out the deliverable to hedge ratio factors which could put many off from breaking long-held settlement in US dollar."

"The US dollar is still, for many reasons, the international trade and reserve currency of choice," according to Kateb. "The whole international financial system is currently structured around the United States and around the central role of the dollar."

However, the expert noted that the international system will change dramatically. Rapid development of blockchain technology along with rooting of virtual currencies is reportedly set to bring about the changing process.

Read more
China can succeed with petro-yuan where Gaddafi failed – killing the US dollar in oil trade
"Eventually, the evolution of global finance will be very much related to the evolution of the global balance of power," the economist told RT. "This will not happen overnight. It will take time and many more crises and balance shifts. None really knows what the new system will look like."

The experts agreed that expelling the greenback from its dominant position in the international monetary system will take much more effort than just replacing it with the euro or other domestic currencies.

"Dollar dominance does not depend simply on its use to denominate trade, but on the dollar's role as the pivot of the international financial system – the fact that about 88 percent of the average daily turnover of foreign exchange instruments is against the dollar, in contrast to the share of the euro which is only about 31 percent," said Vasudevan.

The researcher highlighted that the recent impulse for dislodging the US currency is a symptom of a wider discontent with the rules of the dollar system, but is not a cure for the dollar problem.

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