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To replace the dollar with the ruble and the yuan, or what scares US
Material posted: Publication date: 28-06-2014

American business media not without fear about wondering what the outcome of the meeting of representatives of the Bank of Russia and the people's Bank of China in Shanghai.

These days in China meeting held by the Deputy head of the Bank of Russia Dmitry Skobelkin and the assistant to the head of the NSC Jin Qi. The meeting discusses cooperation on project and trade financing using local currencies as well as issues of cooperation in Bank card, insurance and in financial sector supervision.

So why this meeting is so worried about Americans? The fact is that in fact the Central banks of Russia and China discussed the issue of replacing the dollar in rubles and yuan.

The dollar is the main asset of the USA, which allows them to dominate the world, and any action to transfer payments in national currency to weaken the dollar, especially if we are talking about large countries such as China and Russia.

As a result of the catastrophic reign of President Obama as in the country and in the international arena, it is appropriate to encourage all key global superpower to abandon use of petrodollar and end the dollar as reserve currency, the magazine writes zerohedge.

The development of this story was not so long ago. A little over a month ago, Russia and China finally signed the long-awaited gas supply agreement. For the U.S., the deal had special implications. Instead of at the expense of such a large contract to strengthen the position of the dollar in international transactions, countries have weakened the American currency. They stated that the calculations will be performed in an alternative manner.

At this point, neither the yuan or the ruble can't be an alternative reserve currency, but the desire to move away from the dollar will only contribute to the development of their currencies and financial markets.

Moreover, Gazprom has announced plans to list on the Hong Kong stock exchange and issue bonds denominated in yuan.

Thus, we can conclude that the West itself itself into a corner. The U.S. effort to suspend Russia from the Western financial markets by imposing various kinds of sanctions only strengthens Russia's relations with its major partner - China. And this, in turn, contributes to the creation of a Eurasian strategic Alliance, which is so undesirable for US.


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