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astrid
25th November 2010, 12:34
http://www.chinadaily.com.cn/china/2010-11/24/content_11599087.htm


China and Russia have decided to renounce the US dollar and resort to using their own currencies for bilateral trade, Premier Wen Jiabao and his Russian counterpart Vladimir Putin announced late on Tuesday.

Luke
25th November 2010, 12:55
Makes sense to cut out unreliable Middle man.

China has similar agreement with Venezuela and Brasil , IIRC,

When you can transfer funds via electronic means, you cut the conversion cost significantly this way too (CNY->USD->RUB, double "spread" fee).
Also this will mean the "foreign trade reserves" can be cut accordingly.

On a large scale, well, Han moves make Russ nervous .. so watch what else will transpire.

bashi
25th November 2010, 13:52
Its about pegging the dollar together with the value of crude oil by using it as the only currency to price crude and commodities.
The US has always pressured the world to maintain that status. Saddam had decided not to play that game and was punished. Iran seemed to go the same way.
But now the trend is just too strong.
This is the beginning of the end of the dollar, and the US Gov knows it. The question is: Will the US go down alone with a whimper or will it drag others into the nightmare?

Teakai
26th November 2010, 00:36
Geez. That's huge news, isn't it? Those countries are major players. This is putting the shroud over the dead body that is the US economy.

witchy1
26th November 2010, 01:46
This is the beginning of the end of the dollar, and the US Gov knows it. The question is: Will the US go down alone with a whimper or will it drag others into the nightmare?

Im expecting USD devalue quickly........ just looking that the charts EURUSD was 1.42 to trading now at 1.33. since 4th Nov. What will happen given both currencies are knackered! Anyone with a crystal ball

witchy1
26th November 2010, 02:17
Wow, what an interesting article.............looks like they are putting US on notice

Wen said at the press conference that the partnership between Beijing and Moscow has "reached an unprecedented level" and pledged the two countries will "never become each other's enemy".
Over the past year, "our strategic cooperative partnership endured strenuous tests and reached an unprecedented level," Wen said, adding the two nations are now more confident and determined to defend their mutual interests.
"China will firmly follow the path of peaceful development and support the renaissance of Russia as a great power," he said.

Wen said Beijing is willing to boost cooperation with Moscow in Northeast Asia, Central Asia and the Asia-Pacific region, as well as in major international organizations and on mechanisms in pursuit of a "fair and reasonable new order" in international politics and the economy. (my emphasis)

Luke
26th November 2010, 07:12
(...)
Wen said Beijing is willing to boost cooperation with Moscow in Northeast Asia, Central Asia and the Asia-Pacific region, as well as in major international organizations and on mechanisms in pursuit of a "fair and reasonable new order" in international politics and the economy. (my emphasis)
Funny. Guess State corporation running slave camps and creating "Mandarin"(h)/"Bojar"(r) superwealthy class is the way to go now?

Marcelo Mendes
26th November 2010, 15:21
Hi folks.

In south america we have mercosur, that is an organization that takes care of the south american trades. The countries that are part of it are not trading in dollars anymore, for more than a year. Each country uses your own money and they have a compansation chamber to exchange it back later.

Brazil is doing the same with China and Africans countries. We know that we are not (yet) a major player, but if every contry starts doing the same...

Namaste

MM

sjkted
27th November 2010, 05:51
This is a big deal. Kind of like a divorce. Or more likely telling the US that it has been fired.

--sjkted