Thanks Barack… CHINA & RUSSIA QUIT DOLLAR!
More Hope and Change…
China and Russia decided to renounce the US dollar and use their own currencies for bilateral trades.
China Daily reported:
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.
Chinese experts said the move reflected closer relations between Beijing and Moscow and is not aimed at challenging the dollar, but to protect their domestic economies.
“About trade settlement, we have decided to use our own currencies,” Putin said at a joint news conference with Wen in St. Petersburg.
The two countries were accustomed to using other currencies, especially the dollar, for bilateral trade. Since the financial crisis, however, high-ranking officials on both sides began to explore other possibilities.
The yuan has now started trading against the Russian rouble in the Chinese interbank market, while the renminbi will soon be allowed to trade against the rouble in Russia, Putin said.
“That has forged an important step in bilateral trade and it is a result of the consolidated financial systems of world countries,” he said.
Putin made his remarks after a meeting with Wen. They also officiated at a signing ceremony for 12 documents, including energy cooperation.
The documents covered cooperation on aviation, railroad construction, customs, protecting intellectual property, culture and a joint communiqu. Details of the documents have yet to be released.
This comes after the Fed pumped $600 billion into the economy earlier this month.
Already the dollar has lost 13% against the Japanese yen this year. And even the euro, which was battered by the European debt crisis this spring, has gained 18% against the dollar since June.
It’s not the end of the world if the dollar isn’t the world’s sole reserve currency. It certainly hasn’t been bad for the yen, or the Singapore dollar, or the Swiss Franc — all widely respected and used global currencies — that aren’t THE RESERVE CURRENCY. There’s plenty of stuff to freak out about. This is not one of those things.