Iran, Russia dump US dollar for rial and ruble

[seko]

Coming news from PressTV Russia and Iran are dumping the US dollar and will use their on currencies for trade exchanges.

The Federal reserve won't like that.

12518


Iranian Ambassador to Moscow Seyyed Reza Sajjadi says Iran and Russia have turned to their national hard currencies instead of the American dollar in reciprocal trade exchanges.

http://www.presstv.ir/detail/220020.html

[DreamsInDigital]

Isn't that technically why President Obama is currently threatening to go to war with China? But, on the other hand. This just goes to show Ben Fulford just might be right.

[WhiteFeather]

The USA doesn't want a war with China. China Holds The Gold and The Economy In The Palm Of Its Hand, The USA Is The Proverbial Police Force For The World, And The USA Is About To Lose Its Gun And Badge. China is a sleeping Titan. It's about time China Grew some Balls between its legs. This thread is awesome, I cant wait for the $hit to hit the fan, or did it already here.

[Calz]

Coming news from PressTV Russia and Iran are dumping the US dollar and will use their on currencies for trade exchanges.

The Federal reserve won't like that.

12518


Iranian Ambassador to Moscow Seyyed Reza Sajjadi says Iran and Russia have turned to their national hard currencies instead of the American dollar in reciprocal trade exchanges.

http://www.presstv.ir/detail/220020.html

Posted this a week ago ... clearly there is a worldwide co-ordinated move out of the dollar. Whether or not it has anything to do with Fulford (or others) who knows?






Well well well.

Currency changes are indeed happening. Taken together ... these two articles pretty well spell out the decoupling from the Dollar as the global currrency. China, Japan and India respresent a good "chunk of change".

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China, Japan to Back Direct Trade of Currencies

Japan and China will promote direct trading of the yen and yuan without using dollars and will encourage the development of a market for companies involved in the exchanges, the Japanese government said.

Japan will also apply to buy Chinese bonds next year, allowing the investment of renminbi that leaves China during the transactions, the Japanese government said in a statement after a meeting between Prime Minister Yoshihiko Noda and Chinese Premier Wen Jiabao in Beijing yesterday. Encouraging direct yen- yuan settlement should reduce currency risks and trading costs, the Japanese and Chinese governments said.

China is Japan’s biggest trading partner with 26.5 trillion yen ($340 billion) in two-way transactions last year, from 9.2 trillion yen a decade earlier. The pacts between the world’s second- and third-largest economies mirror attempts by fund managers to diversify as the two-year-old European debt crisis keeps global financial markets volatile.

“Given the huge size of the trade volume between Asia’s two biggest economies, this agreement is much more significant than any other pacts China has signed with other nations,” said Ren Xianfang, a Beijing-based economist with IHS Global Insight Ltd.

Currency Swap
China also announced a 70 billion yuan ($11 billion) currency swap agreement with Thailand last week as part of a plan outlined in October to promote the use of the yuan in the Association of Southeast Asian Nations and establish free trade zones.

Central banks from Thailand to Nigeria plan to start buying yuan assets as slowing global growth has capped interest rates in the U.S. and Europe.

The move by China and Japan to strengthen market cooperation “benefits the ease of trade and investments between the two countries,” Chinese Foreign Ministry spokesman Hong Lei said today in Beijing. “It strengthens the region’s ability to protect against risks and deal with challenges.”

The yuan traded in Hong Kong’s offshore market gained 0.5 percent offshore last week and touched 6.3324 per dollar, the strongest level since trading started in July 2010. Its discount to the exchange rate in Shanghai narrowed to 0.1 percent, from a record 1.9 percent on Sept. 23.

Yuan Gains
The yuan gained 0.05 percent in Shanghai to 6.3330 per dollar today and was little changed at 6.3450 in Hong Kong. It strengthened 4.3 percent this year, the best-performing Asian currency excluding the yen. The currency is allowed to trade 0.5 percent on either side of that rate. The yuan is a denomination of the renminbi.

Japan exported 10.8 trillion yen to China in the year through November, and imported 12 trillion yen, according to Ministry of Finance data. The deficit with China widened to 1.2 trillion yen, from 418 billion yen in January-to-November 2010. About 60 percent of the trade transactions are settled in dollars, according to Japan’s Finance Ministry.

Finance Minister Jun Azumi said Dec. 20 buying of Chinese bonds would help reveal more information about financial markets in China. Noda said in September 2010, when he was finance minister, that Japan should be able to invest in China given that its neighbor buys Japanese debt. Japan holds $1.3 trillion of foreign-currency reserves, the world’s second largest after China’s $3.2 trillion.

Chinese Debt
Investing in Chinese debt has become easier for central banks as issuance of yuan-denominated bonds in Hong Kong more than tripled to 112 billion yuan ($18 billion) this year and institutions were granted quotas to invest onshore. Japan will start to buy “a small amount” of China’s bonds, a Japanese government official said on condition of anonymity because of the ministry’s policy, without elaborating.

China sold the second-biggest net amount of Japanese debt on record in October as the yen headed for a postwar high against the dollar and benchmark yields approached their lowest levels in a year. It cut Japanese debt by 853 billion yen, Japan’s Ministry of Finance said on Dec. 8.

Separately, the Japan Bank for International Cooperation, JGC Corp., Mizuho Corporate Bank Ltd., the Export-Import Bank of China and other Chinese companies will establish a $154 million fund to invest in environment-related businesses such as recycling and energy, the Japanese government said.


http://www.bloomberg.com/news/2011-12-25/china-japan-to-promote-direct-trading-of-currencies-to-cut-company-costs.html


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Japan, India Seal $15 Billion Currency Swap Arrangement to Shore Up Rupee

Japan agreed to make $15 billion available to India in a currency swap arrangement as Europe’s deepening debt crisis threatens to curtail developing Asia’s access to dollar funding.

Japanese Prime Minister Yoshihiko Noda renewed a bilateral swap agreement with Indian Prime Minister Manmohan Singh in New Delhi today. The two nations had signed a $3 billion accord in June 2008 that has since expired.

Today’s agreement may help India battle this year’s more- than 16 percent decline in the rupee as Europe’s sovereign-debt turmoil prompts investors to reduce Asian investments on concern global growth will slow. Japan gains another avenue of using its $1.2 trillion of currency reserves as it seeks to bolster its presence in international finance and foster a closer trade relationship with Asia’s third-largest economy.

“Japan is helping India to provide stability to the rupee,” said K. V. Kesavan, who specializes in Japanese studies at New Delhi-based think tank Observer Research Foundation. “It is an attempt to increase their influence in Asia which has been down for the past many years.”

With a current-account deficit, slowing domestic growth and increased international financial stress stemming from Europe, investors have driven the rupee down, forcing the central bank to tap its reserves in defense. India’s holdings slid $14 billion in the four weeks to Nov. 25.

China Pact

Japan has pursued currency-swap accords with other nations, including one with South Korea that it expanded to $70 billion in October to stabilize Asia’s financial market. Japan also has bilateral swap deals with Indonesia, the Philippines and China.

This month, Noda also oversaw a deal with China to expand use of the yuan and yen in bilateral trade and purchase Chinese bonds. At home, in an effort to take advantage of the yen hovering near a record-high against the dollar, officials have prepared 10 trillion yen ($129 billion) in a fund for companies to pursue more overseas acquisitions.

Japanese efforts to support regional neighbors are long- standing. In October 1998, Japan unveiled $30 billion in aid under the so-called Miyazawa Initiative, named after Finance Minister Kiichi Miyazawa, designed to help countries obtain funds at a time when emerging-market bond issuance had largely dried up amid the 1997-98 financial crisis.

Reserves in Japan swelled to $1.22 trillion in November from $1.04 trillion at the end of last year, propelled in part by a resumption of currency intervention under Noda, starting with one round in September 2010 when he was finance minister. With Noda as prime minister, yen sales continued with at least three episodes this year.

Along with today’s accord, Japan also requested that India ease financial regulations to spur investment in a railway project. India agreed to study the changes, the Japanese finance ministry told reporters in Tokyo today.

http://www.bloomberg.com/news/2011-12-28/japan-india-seal-15-billion-currency-swap-arrangement-to-shore-up-rupee.html

[seko]

Seems like China will do well in the near future, but I wonder if this is good for the rest of the World or simply some other country has the new world currency and we are still in the same crappy financial system.

[Referee]

The USA doesn't want a war with China. China Holds The Gold and The Economy In The Palm Of Its Hand, The USA Is The Proverbial Police Force For The World, And The USA Is About To Lose Its Gun And Badge. China is a sleeping Titan. It's about time China Grew some Balls between its legs. This thread is awesome, I cant wait for the $hit to hit the fan, or did it already here.

Maybee the US wants Chinas Status!

[Lost Soul]

Russia and China forego the USD when they exchange with each other.
China also does the same with Iran and India.

There will be a bank holiday after which the dollar will be devalued. Then TPTW can give us their new currency. Occupy must get larger and start focusing on .gov and the Fed Res.