"It's A Huge Story": China Launching "Petroyuan" In Two Months

bostonangler · July 2, 2018

U.S. dollar share of global currency reserves fall further - IMF

(Reuters) - The U.S. dollar's share of currency reserves reported to the International Monetary Fund fell in first quarter of 2018 to a fresh four-year low, while euro, yuan and sterling's shares of reserves increased, according to the latest data from the International Monetary Fund.

The share of dollar reserves shrank for five consecutive quarters as the greenback weakened in the first three months of 2018 on expectations faster growth outside the United States and bets that other major central banks would consider reducing stimulus. Still the dollar has remained the biggest reserve currency by far.

However, the dollar strengthened in the second quarter on fears about a global trade war and the European Central Bank signaling it would not raise interest rates until latter half of 2019.

Global reserves are assets of central banks held in different currencies, mainly used to support their liabilities. Central banks sometimes have used reserves to help support their respective currencies.

Reserves held in U.S. dollars climbed to $6.499 trillion, or 62.48 percent of allocated reserves, in the first quarter. This compared with $6.282 trillion, or 62.72 percent of allocated reserves, in the fourth quarter of 2017. The share of U.S. dollar reserves contracted to its smallest level since reaching 61.24 percent in the fourth quarter of 2013, IMF data released late on Friday showed.

Ranked second behind the greenback, the euro's share of global reserves reached 20.39 percent in the fourth quarter, up from 20.15 percent in the fourth quarter. This was its largest share since the final quarter of 2014, but well below the single currency's peak share of reserves at 28 percent in 2009.

China's share of allocated currency reserves increased for a third straight quarter to 1.39 percent. The IMF had reported the yuan's share of central bank holdings for the first time in the fourth quarter of 2016.

Sterling's share of currency reserves moved up to 4.68 percent in the first quarter, the biggest since the fourth quarter of 2015, IMF data showed.

The yen's share of currency reserves retreated to 4.81 percent from prior quarter's 4.89 percent, which was its biggest since the fourth quarter of 2002.

Butifldrm · July 5, 2018

China: Washington opens fire on the world with its trade threats

2018-07-05 10:08:36 0 comments

China said the United States opened fire on the world with its trade threats, vowing to respond to immediate US measures that would come into effect.

The spokesman for the Ministry of Commerce of China warned at a weekly press conference on Thursday that the proposed US tariffs would harm international supply chains, including foreign companies in Beijing, quoting Reuters.

In the event of US tariffs, China will add tariffs to companies from all countries, including Chinese and US companies, he added.

The United States will start applying tariffs on goods worth 34 billion dollars from China.

"The US measures are basically attacking the global supply and supply," he said. "More clearly, the United States is opening fire on the entire world, including Washington itself."

China said yesterday it would not launch the first shot in a trade war with the United States and would not be the first to impose customs duties.

http://albaghdadiyagroup.com/news/economy/alsen-oashntn-tfth-alnar-al-alaalm-bthdedatha-altgaret

Butifldrm · July 5, 2018

China Rejects US "Blackmail" On Eve Of Trade War, Vows To Fight Back

by Tyler Durden

Thu, 07/05/2018 - 08:12

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With just hours left until the US officially declares trade war on China at midnight on Friday, when the Trump admin enacts tariffs on $34bn in Chinese products and Beijing retaliates instantly in kind, China on Thursday rejected "threats and blackmail" ahead of the tariff hike, striking the usual defiant stance in the dispute which companies have warned could flare into a full-blown trade war and chill the global economy.

A government spokesman said Beijing will defend itself if U.S. President Donald Trump goes ahead Friday with plans to raise duties on Chinese goods in the escalating conflict over technology policy. The Chinese government has already issued a list of U.S. goods for retaliation, but the Commerce Ministry said it will wait to see what Washington does.

“China will not bow in the face of threats and blackmail, nor will it be shaken in its resolve to defend global free trade,” said ministry spokesman Gao Feng at a news conference.

“China will never fire the first shot,” Gao said. “However, if the United States adopts taxation measures, China will be forced to fight back to defend the core interests of the nation and the interests of the people.”

As for shooting, Gao said that the "U.S. is shooting itself in the foot and hurting the world" with its tariff hikes.

Friday’s tariff hikes are the first stage in threatened U.S. increases on up to $450 billion of imports from China over complaints Beijing steals or pressures foreign companies to hand over technology. According to Goldman calculations, if the full scope of Trump's proposed protectionist measures is implemented, this would raise the total amount of tariffs the Trump administration has proposed from around $500bn to nearly $800bn, or about 4 times the cumulative amount that had been proposed as of a few month ago, before President Trump proposed tariffs on global auto imports on national security grounds.

And while Xi’s government has expressed confidence China can hold out against U.S. pressure, but companies and investors are uneasy. Trade worries are adding to anxiety over cooling economic growth and tighter lending controls that have hit real estate and other industries. The main Chinese stock market index has tumbled 12 percent over the past month.

According to AP, Chinese exporters of tools, lighting and appliances say U.S. orders have shrunk as customers wait to see what will happen to prices.

Ningbo Top East Technology Co., which makes soldering irons in Ningbo, south of Shanghai, used to export 30 percent of its output to the United States, according to its general manager, Tong Feibing. He said American orders have fallen 30 to 50 percent compared with a year ago.

The company wants customers to split the cost of the tariff hike, but few are willing, said Tong.

“There is a chance the company will lose money and might go bankrupt,” said Tong. “I will do whatever I can, including layoffs.”

China's ruling Communist Party has insisted on making changes at its own pace while sticking to a state-led industrial strategy seen as the path to prosperity and global influence. Officials in Beijing reject accusations of theft and say foreign companies have no obligation to hand over technology. But rules on auto manufacturing, pharmaceuticals and other industries require companies to operate through state-owned Chinese partners and share know-how with potential competitors or teach them how to develop their own.

Beijing has announced changes this year including easing limits on foreign ownership in insurance and some other fields. But none directly addresses the complaints that are fueling its conflict with Washington.

The U.S. also has irked some of its closest allies by hiking import duties on steel, aluminum and autos from Europe, Japan, Canada and Mexico.

“The global trade conflict is at risk of a serious escalation,” said Adam Slater of Oxford Economics in a report.

So far tariffs imposed by all sides affect about $60 billion of goods, or 0.3% of world trade, according to Slater. He said that would rise to a full 4% of the global total if Washington, Beijing and other governments follow through on tariff threats.

Ironically, for all the bluster and counter-American rhetoric, yesterday Reuters reports that the EU flatly rejected a Chinese proposal to form s strategic alliance between the two entities and take on the US. The reason for Europe's skepticism? The admission behind the scenes that Trump is correct in his blame of Beijing, and also the complete lack of faith in Brussels that anything China promises to do it will actually implement.

https://www.zerohedge.com/news/2018-07-05/china-rejects-us-blackmail-eve-trade-war-vows-fight-back

Butifldrm · July 5, 2018

Looming Dollar Shortage Getting Worse As Emerging Markets Implode

by Tyler Durden

Thu, 07/05/2018 - 13:50

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Authored by Adem Tumerkan via Palisade-Research.com,

One of the most important macro-situations that’s developing right now is the looming U.S. dollar shortage.

I don’t mean in the sense that banks don’t have enough dollars to lend out – I’m talking about the foreign sovereign markets.

Here are some of the things that’s causing liquidity to dry up...

1. Soaring U.S. deficits – the United States’ need for constant funding is requiring huge amounts of capital

2. A strengthening U.S. Dollar – which is weakening the rest of the worlds currencies

3. Rising U.S. short-term rates and LIBOR rates – courtesy of the Federal Reserve’s tightening

4. The Fed’s quantitative tightening program – unwinding their balance sheet by selling bonds

These four things are making global markets extremely fragile. . .

I’ve written about this dollar shortage before – but things are getting much worse.

As a recap of why this all matters – when the U.S. buys goods from abroad, they are taking in goods and sending out dollars. Otherwise said, they are selling dollars out of the country in return for goods.

Those countries that sold to America now have dollars in return. But since countries don’t have a mattress to store their money under – they must find liquid and ‘safe’ places to put it.

With the dollar as the world’s reserve currency – and U.S. treasury market being the most liquid – countries usually take the dollars and funnel them back into the U.S. via buying bonds.

Since the U.S. is a net-debtor – inflows of new money is constantly required to pay out outstanding bills. So there’s always fresh debt that foreigners can buy.

And if you haven’t checked lately, the national debt is over $21 trillion – and growing faster. The latest Congressional Budget Office (CBO) report stated that at the current rate – U.S. debt-to-GDP will be over 100% by 2028 (if not sooner).

So how does this tie into a dollar shortage?

Let me break it down...

The always-rapidly-growing U.S. deficit requires constant funding from foreigners. But with the Federal Reserve raising rates and unwinding their balance sheet through Quantitative Tightening (QT) – meaning they’re sucking money out of the banking system.

These two situations are creating the shortage abroad. The U.S. Treasury’s soaking up more dollars at a time when the Fed is sucking capital out of the economy.

Not too mention the strengthening dollar and higher short-term yields are making it more difficult for foreigners to borrow in dollars. Especially at a time when Emerging Market’s are imploding.

And as we know – while the dollar gets more expensive – other currencies are getting weaker.

Here’s some of the largest Asian economies and how much their currencies have weakened against the dollar. . .

Unfortunately – foreign Central Banks have only limited options of what they can do to protect their currencies. . .

One – they can raise rates to defend their local currency. The idea is that if they offer higher interest rates, investors will park money in the country.

But raising rates will slow their growth down and hurt the nations debtors. And with Trump’s trade policies causing concerns for export heavy economies – mainly the Emerging Markets – making borrowers pay more interest isn’t a good thing.

Two – they can sell their dollar reserves instead. The Central Bank can sell their reserves at a discount on the Foreign Exchange market. And buy their local currency in return – pushing the USD down against their own currency.

The problem with this option is that it’s very costly and risky. . .

All the years of surpluses it took for them to build up those dollar reserves can disappear in a blink of an eye. And what do they get in return for all that cost? Temporary stability of their currency until they run out of dollars to sell. This is what happened in the 1998 ‘Asian Contagion’ crisis that decimated Asian economies.

And it appears things are already approaching ‘critical mass’ as foreign Central Banks grow concerned with the Fed’s tightening. Here are a couple of examples. . .

The Vietnamese Central Bank recently announced that they’re willing to intervene in the foreign exchange market to protect the stability of their local currency – the Vietnamese Dong (VND) – which just hit a record low.

This means they’re using ‘Option Two’ – selling their dollar reserves (pushing the USD Forex down) and buying the Dong on the open market (pushing the VND up).

This will ‘stabilize’ their currency’s value – that is, until they run out of dollars. . .

Another example – the Reserve Bank of India (RBI) governor – Urjit Patel – penned a piece in the Financial Times urging the Fed to slow down their tightening to prevent further chaos in the emerging markets.

Indonesia’s new central bank chief shared the RBI’s feelings – calling on the Fed to be “more mindful of the global repercussions of policy tightening.”

With the U.S. Treasury requiring significant funding from abroad. And the Fed raising rates while pulling dollars out of the economy via Quantitative Tightening – this is the foundation of a dollar shortage.

The soaring U.S. dollar, Emerging Market chaos, and depreciating Asian currencies are all effects from this.

That means global economies and stock markets will grow far more fragile – until the Fed inevitably reverses their tightening to re-liquidize global markets.

As usual – expect things to get worse before they get better.

https://www.zerohedge.com/news/2018-07-05/looming-dollar-shortage-getting-worse-emerging-markets-implode

bostonangler · July 9, 2018

President Donald Trump’s tariffs have caused some champions of globalization to predict the decline of the dollar BUXX, -0.28% as the global currency as other nations take the leadership in cobbling together free trade areas—for example, the TTP less the United States in the Pacific, and China’s attempt to cobble together economic cooperation arrangements in the region.

Central banks around the world hold major foreign currencies—dollars, euros, yen and so forth—to back up their fiat money. Gold GCQ8, +0.85% can’t be mined fast enough at reasonable cost to accommodate economic growth, and its value—what it buys in soybeans and software—fluctuates much more than major currencies.

As New York offers a deep, sophisticated and reliable capital market and traders can buy virtually anything in America, central banks must hold dollars above all other major currencies to be taken seriously by private investors.

The dollar accounts for 63% of central-bank holdings, followed by the euro EURUSD, +0.3576% at 20%, even though the U.S. economy is smaller than the eurozone.

Most investors worldwide either buy securities denominated in their home currencies or in dollars. After all, Mexican pensioners and businesses pay their expenses in pesos USDMXN, -0.1601% but if their home currency drops precipitously in value thanks to a surge in domestic inflation, then a hoard of dollar bonds or CDs is mighty useful insurance.

Consequently, the dollar’s share of cross-border debt financing has jumped from about 45% to over 63% since 2008.

Globalization and digitalization have created more intense trading relationships among once-distant and unrelated nations. For example, Chile recently signed a trade agreement with Indonesia but their two-way trade is too small to support a currency market with derivatives that insure against unexpected exchange rate fluctuations. The answer is simple—import contracts can be written in dollars, and traders can purchase forward contracts in the peso-dollar CLPUSD, +0.030455% and rupiah-dollar IDRUSD, +0.34263363% markets to off load risk.

The dollar has gained an outsized role for the same reason English is increasingly the global language. In trade as on the internet, it is easier to have a common denominator—America’s currency and mother tongue.

Chances are those Chilean and Indonesian traders write contracts in English too.

Despite euro aspirations to be a global currency, 23% of German contracts for imports are denominated in dollars even though only 6% are shipped from America.

Overall, about 40% of imports worldwide are invoiced in dollars even though the United States accounts for only about one-tenth of global sales.

Foreign multinationals and trading houses store hoards of dollars to conduct business and hedge risk. Foreign banks take dollar deposits, pay interest on those in dollars and offer dollar loans. Foreign governments and businesses issue dollar-denominated bonds and virtually all of this is electronic, much of it unregulated and most importantly, the result of private-sector choice.

Sorry Bitcoin BTCUSD, -0.46% , offshore dollars were a private currency for years—largely virtual, without official government sanction and lightly regulated—long before initial coin offerings came along. And it’s run by much more trustworthy and careful people.

Fact is no other currency has the global utility and supporting infrastructure of the greenback.

The dollar stands on top a strong banking system, while the next logical candidates, the euro and yuan USDCNH, -0.6873% do not. Germany’s largest bank, Deutsche Bank DB, +2.96% , is a basket case, Italian banks are well, very Italian, Chinese banks sit on a mountain of bad state enterprise and corporate debt, and private property is not safe in the Middle Kingdom.

The U.K. pound GBPUSD, +0.4440% and Japanese yen USDJPY, -0.02% sit on economies that don’t provide the same mass and array of goods and services. And if Brexit proceeds, the euro becomes one national election away from collapsing—the Italians could conclude the single currency is a manifestation of German economic imperialism.

All this did not happen by government edict—it’s King Dollar by acclaim of private traders, investors and plain old folks like you and me.

And all along you thought the Federal Reserve made the greenback what it is.

Butifldrm · July 9, 2018

Will Russia and Turkey knock the last nail into the coffin of dollar dominance?

Will Russia and Turkey knock the last nail into the coffin of dollar dominance?

09 Jul 2018 01:21 PM

Edit نهى النحاس

Direct: Since December 2017 Russia has reduced its holdings of US government bonds by more than half in favor of increasing the share of gold in its international reserves.

An analysis published by Bloomberg View suggests that while this is understandable behavior by a country that must deal with unexpected sanctions by the United States, it is also part of a global trend.

Foreign governments and international organizations have become a declining share of US debt repayments, and some economies have in recent years sharply increased gold holdings in their reserves.

Russia's contribution to American religion

Russia's holdings of US bonds fell to $ 48.7 billion in April from $ 102.2 billion in December 2017, a sharp decline.

But the decline in Russia's holdings of US government bonds was not a crisis for the United States. Moscow's investment in US debt is very small compared to countries such as Japan, China, Brazil and some European countries.

The United States, whose debt is close to $ 21 trillion, can not see fluctuations in tens of millions of dollars as a result of efforts by a country seeking to escape the dollar and combat negative economic effects.

Is this a sign of concern for the United States?

The United States can calm itself down and gain a certain sense of security as it monitors the increasing share of foreigners in its financial debt in absolute terms, while the dollar is slowly declining as a share of official foreign exchange reserves.

According to IMF data, the US currency represented 62.7 percent of the country's foreign reserves, down from 64.59 percent in 2014.

But the euro share also saw a decline to 20.15%, from 21.57%.

However, the United States has some concerns when it comes to dominating the official international reserves of other countries. In relative terms, governments and central banks are less concerned about the ballooning debt of the United States.

Why is there a caution against American debt?

US debt is growing faster than global international reserves, partly explained by the decline in the role of foreign countries in terms of US government funding.

Borrowing growth is faster than global savings . There is an abundance of US debt, but countries do not care to increase the share of those debts in their reserves.

Instead, the share of US bonds in reserves fell to 25.4 percent from 28.1 percent in 2008. By contrast, gold's share had stabilized at 11 percent over the same period, according to the World Gold Council.

This is in part due to the tendency of some authorities to own gold. Along with Russia in this direction are Kazakhstan and Turkey, which recently joined with the belief of President Recep Tayyip Erdogan that the West seeks to punish his country because of the policy of strengthening sovereignty.

Authorities obsession with gold

Russia, Turkey and Kazakhstan account for 50% of net gold purchases by central banks in the past five years. The major European economies, which have long retained gold as the largest component of their reserves, have kept their stakes stable rather than the additional investment in dollar assets.

In the euro area, including the European Central Bank, countries put 55 percent of their reserves in gold, the same as in 2008.

More recently, total demand for gold fell, falling by 7% yoy in the first quarter of this year as a result of a drop in private investment demand.

Central banks bought 116.5 tonnes of gold in the first three months of 2018, the highest in any quarter since 2014, and 42 percent year-on-year.

For Turkey and Russia, the decision to cut foreign currency holdings appears to be strategic. Like Russia, Turkey recently moved quickly outside the US debt, with a 38 percent reduction since October 2017.

The reason why many countries have not followed the same direction as Turkey and Russia on the background of their concern about the economic policies of US President Donald Trump and his wars, isolationism and the relatively weak US dollar is that the performance of gold is weaker than the US dollar.

Foreign reserve officials in most countries act increasingly like investors as they seek positive returns. This means that politically motivated and politically motivated moves for gold are not the motive for most of them. But when the precious metal starts to rise, perhaps in reaction to accelerating inflation, .

Meanwhile, reserve managers are looking for other non-dollar assets, with all but one of the reserve currencies, except for the dollar, rising slightly since Trump's election.

This is a very shy shift so far, but that should not fool US policymakers. The US dollar has dominated the international reserves for nearly a century, but in relative terms, that is a very short period.

The pound was the preferred currency before the dollar and before it the French franc.

It is unreasonable for the world to continue to buy US debt at the same levels, regardless of US policies and the changing perceptions of the political and economic power of the United States. Therefore, the Russian and Turkish transformation into gold could be a prelude to larger global transformations.

https://www.mubasher.info/news/3309806/هل-تدق-روسيا-وتركيا-المسمار-الأخير-في-نعش-هيمنة-الدولار-

new york kevin · July 9, 2018

IMHO, not a sign of concern for the US. Merely a sign of Russia's intention to increase it's gold reserves at the expense of China in the near future; and this way lower the value of the Yuan while also messing with China. Similar to the same way they were messing with the USD in 1967 or 1968 causing Nixion to take the USD off of the gold standard. Us remember the largest holder of US debt ... T Bill is domestic US citizens, Unions, companies and local governments.

Edited July 9, 2018 by new york kevin

bostonangler · July 12, 2018

Pakistan’s central bank has increased the amount of red tape needed to access dollars, according to people with knowledge of the matter, as the nation’s foreign-exchange reserves drop at the fastest pace in Asia.

The State Bank of Pakistan has told banks after a currency devaluation last month that importers will need to inform the regulator of any requests for the U.S. currency a day in advance and fill out a form for import payments, according to people familiar with the matter, who asked not to be identified as they are not authorized to speak to the media. The measure applies to transactions that are not backed by a bank’s letter of credit, said one of the people. The Karachi-based central bank didn’t respond to a request for comment.

Vanishing Dollars

Biggest foreign reserve erosions in Asia over past year

The finances of South Asia’s second largest economy are showing increased vulnerability ahead of elections in two weeks. Dollar reserves have dropped to the lowest level in more than three and a half years and record imports have widened the current-account deficit. Pakistan has devalued its currency three times since December in an attempt to ease the pressure.

“Once you go into high current account deficit and reserves deplete, this happens,” said Asad Sayeed, director at the Karachi-based consultancy Collective for Social Science Research. “Investments are going to be affected. Your high growth time is over now.”

Pakistan’s economy faces “some very daunting challenges,” but the decision to approach the International Monetary Fund for support will have to be taken by the new government after the July 25 ballot, according to caretaker Finance Minister Shamshad Akhtar. Moody’s Investors Service revised its outlook downward to negative from stable in June citing heightened external vulnerability risk, according to a statement.

Distress Level

Pakistan reserves drop below level previous IMF loans acquired

“On the external front, there is a need to arrange external financing in the short-term, and resolve structural issues affecting competitiveness in the medium and long term,” the central bank said in a quarterly report on Wednesday.

Pakistan’s central bank has also doubled its local currency swap deal with People’s Bank of China, the nation’s largest trading partner, and is encouraging banks to make payments in yuan transactions, according to central bank statements. China is financing the construction of power plants and infrastructure projects worth about $60 billion as part of the Belt and Road initiative that has helped limit power blackouts, but has also increased Pakistan’s machinery imports.

Terrorism Financing

The Finance Ministry said in a statement this week that Pakistan will increase monitoring of currency movements after a global anti-money laundering agency in June placed the nation back on its terrorism-financing “grey” monitoring list.

Finance Minister Akhtar said that systems need to be upgraded at all ports and check points along the border to curb smuggling, according to the statement. The central bank’s measure will also help document financial transactions further, according to one of the people familiar with the matter.

blueskyline · July 26, 2018

https://www.zerohedge.com/news/2018-07-25/potential-impacts-yuan-gold-peg.......

Potential Impacts of the Yuan-Gold Peg

Written by Craig Hemke, Sprott Money News

Two weeks ago, we demonstrated that the yuan-dollar exchange rate is now the primary driver of global gold prices. Today, we attempt to decipher some of the important implications of this phenomenon.

Before we begin, we urge you to review this column from earlier in the month:https://www.sprottmoney.com/Blog/has-the-pboc-take...

So again, let's be perfectly clear about this. Though other factors such as headlines and the dollar index can affect price on a minute-by-minute basis, the primary driver of the gold price in the summer of 2018 is the yuan-dollar exchange rate. Though the PBOC has long-maintained a "peg" in the relative valuation of the yuan versus the dollar, the past 90 days have seen a steady devaluation of this peg to the tune of nearly 8%. See below:

Over that same time period, the price of COMEX gold has fallen by more than 10%:

To make this correlation more clear, let's plot the two together. This correlation has become extraordinarily tight over the past month, as you can see below where the CNYUSD exchange rate is displayed in candlesticks and COMEX gold is a blue line:

And when you draw it down to just the past five days, it's quite clear that the two react almost simultaneously:

This is not a correlation searching for a cause, nor is it a simple act of "traders" reacting to a falling yuan by selling digital gold. No, in a market the size of global gold, this type of sudden and direct correlation can only be accomplished through massive interventions, the size and scope of which is only possible at the state/sovereign level. And which state/sovereign would have a direct interest in linking the dollar price of gold to the yuan? China, of course.

In the face of massive U.S. tariffs and possible currency war, China has responded by aggressively devaluing their currency versus the U.S. dollar. In order to maintain an "equilibrium" of commodity prices through this process, it's clear that China is now aggressively intervening in the global futures markets.

Of course, the implications of this are significant, and here is the primary question to consider:

IF China is moving to systematically devalue the yuan versus the dollar, and
IF they are actively intervening in futures markets in order to keep the relative cost of commodities in yuan terms stable,
THEN why would they go to all of this trouble simply to protect against just an 8% devaluation?

With this question in mind, consider the potential impacts of a 20-30% yuan devaluation in the months ahead. Many analysts have maintained that this level of devaluation might be necessary for China after years of managing their dollar peg—and these views were long-held and expressed before Trump's plans of taxes and tariffs came into view.

In August of 2015, the S&P 500 index fell by more than 12% in six days, following a 3.5% yuan devaluation. So far, the S&P has held up in the face of this ongoing 7.5% devaluation, but can it overcome a yuan devaluation of 20%? And what about gold? Since price is no longer driven by fundamentals such as physical supply and demand, how much farther might price fall if China attempts to rig it lower in conjunction with their continuing yuan devaluations?

These are important questions to consider regardless of whether you own physical gold, as crashing global equity markets would greatly impact interest rates and the future plans of central banks.

So, please take some time to consider the now-present link of the Chinese yuan and gold/commodity prices, in general. And then pause to reflect upon whether you are prepared for what this correlation may be foreshadowing.

Butifldrm · July 27, 2018

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Craig Hemke at Sprott Money: Potential impacts of the yuan-gold peg

Published by fbtg1l at 25/07/2018

9:14p ET Tuesday, July 24, 2018 Dear Friend of GATA and Gold: Craig Hemke of the TF Metals Report, writing tonight at Sprott Money, says the recent tight correlation between Chinese yuan and gold prices indicates massive intervention in the gold market by China to keep commodity prices down as China devalues the yuan in its trade war with the United States. The Chinese intervention, Hemke writes, implies not only a continued decline in the gold price but also a thrashing in the stock market. Hemke’s analysis is headlined “Potential Impacts of the Yuan-Gold Peg” and it’s posted at Sprott Money here: https://www.sprottmoney.com/Blog/potential-impacts-of-the-yuan-gold-peg-… CHRIS POWELL, Secretary/Treasurer Gold Anti-Trust Action Committee Inc. CPowell@GATA.org ADVERTISEMENT Storage and Withdrawal of Gold with Bullion Star in Singapore Bullion Star is a Singapore-registered company with a one-stop bullion shop, showroom, and vault at 45 New Bridge Road in Singapore. Bullion Star’s solution for storing bullion in Singapore is called My Vault Storage. With My Vault Storage you can store bullion in Bullion Star’s bullion vault, which is integrated with Bullion Star’s shop and showroom, making it a convenient one-stop shop for precious metals in Singapore. Customers can buy, store, sell, or request physical withdrawal of their bullion through My Vault Storage® online around the clock. Storage rates are competitive. For more information, please visit Bullion Star here: https://www.bullionstar.com/ Join GATA here: New Orleans Investment Conference Hilton New Orleans Riverside Hotel Thursday-Sunday, November 1-4, 2018 https://neworleansconference.com/ * * * Help keep GATA going: GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at: http://www.gata.org To contribute to GATA, please visit: http://www.gata.org/node/16
Source: Craig Hemke at Sprott Money: Potential impacts of the yuan-gold peg

https://gcil.co.uk/craig-hemke-at-sprott-money-potential-impacts-of-the-yuan-gold-peg/

Butifldrm · July 27, 2018

BA, wow this one is for you! I'm shocked, and just wondering if this was one of the dprivate conversations Putin had with Trump?

Putin: We do not plan to give up the US dollar

27 July 2018 09:22 PM

Direct: Russian President Vladimir Putin stressed that his country has no plans to give up possession of the US dollar in the international monetary Ahtaattha.

Putin said at a news conference on the sidelines of the summit of the Brix countries of South Africa, on Friday, that Moscow does not plan to make any sudden movements, quoting the agency "Reuters".

Putin's comments come in the wake of official statements that revealed Russia's renunciation of US Treasuries over the past few months, a sign of further deterioration of relations between Moscow and Washington.

The Russian president explained that Moscow used the dollar and will continue to use it to the extent allowed by the financial authorities in the United States.

However, Russia should work to reduce the risks associated with sanctions and illegal restrictions, he said.

Russia has been subject to economic and financial sanctions since 2014 by the West as Moscow annexed Crimea and its role in the Ukrainian crisis.

"We are aware of such risks and we are trying to reduce their damage," he said, referring to the risk of sanctions.

Russian PM: "New US Sanctions Would Be Declaration Of Economic War"

by Tyler Durden

Fri, 08/10/2018 - 07:48

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As diplomatic tensions again escalate between the US and Russia following the announcement of new sanctions against Moscow earlier this week by the Trump administration, Russia's prime minister Dmitry Medvedev warned the United States on Friday that Russia would regard any U.S. move to curb the activities of its banks as a declaration of economic war which it would retaliate against.

Medvedev said Moscow would take economic, political or other retaliatory measures against the United States if Washington targeted Russian banks.

medvedev%203.jpg

"If they introduce something like a ban on banking operations or the use of any currency, we will treat it as a declaration of economic war. And we’ll have to respond to it accordingly – economically, politically, or in any other way, if required," Medvedev said during a trip to the Kamchatka region.

"Our American friends should make no mistake about it," he cautioned.

Medvedev also noted that Russia has a long history of surviving economic restrictions and never caved in to the pressure in the past. "Our country had been living under constant pressure through sanctions for the last hundred years," Medvedev said, accusing the US and its allies of employing sanctions to undercut global competition. "Nothing has changed."

The Russian PM said that by targeting Russia’s gas exports to Europe, Washington wants to push its own LNG shipments to the continent. “It’s an absolutely nonmarket anti-competition measure aimed at strangling our capabilities.” Medvedev also pointed out that the US is simultaneously imposing tariffs on China. “The Chinese, obviously, don’t like it. No one does. And our goal is to resist all these measures.”

According to Reuters, Medvedev's statement reflects Russia's fears over the impact of new restrictions on its economy and assets, including the rouble which tumbled 6% of its value this week on sanctions jitters. With economists expecting the economy to grow by 1.8% this year, some fear that if new sanctions proposed by Congress and the State Department are implemented in full, growth would be almost cut to zero.

On Wednesday, the State Department announced a new round of sanctions targeting Russian exports of dual-purpose electronics and other national security-controlled equipment, which will come into effect on August 22, and which pushed the Russian currency to two-year lows and sparked a wider sell-off over fears Russia was locked in a spiral of never-ending sanctions.

USDRUB%208.8_0.jpg

Separate legislation introduced last week in draft form by Republican and Democratic senators, dubbed “the sanctions bill from hell” by one of its backers, proposes curbs on the operations of several state-owned Russian banks in the United States and restrictions on their use of the dollar.

Moscow’s strategy of trying to improve battered U.S.-Russia ties by attempting to build bridges with President Trump backfired after U.S. lawmakers launched a new sanctions drive last week because they fear Trump is too soft on Russia. That in turn piled pressure on Trump to show he is tough on Russia ahead of mid-term elections and the possible release of Mueller's report on Russian collusion.

The problem for Russia is that there is little it could do to hit back at the United States without damaging its own economy or depriving its consumers of sought after goods as the sanctions episode of 2014 showed, and officials in Moscow have made clear they do not want to get drawn into what they describe as a mutually-damaging ***-for-tat sanctions war, similar to the one the US is waging with China.

The threat of more U.S. sanctions kept the rouble under pressure on Friday, sending it crashing past two-year lows at one point before it recouped some of its losses.

Commenting on the currency slide, the Russian central bank said the rouble’s fall to multi-month lows on news of new U.S. sanctions was a "natural reaction" and that it had the necessary tools to prevent any threat to financial stability. One tool it said it might use was limiting market volatility by adjusting how much foreign currency it buys. Central bank data showed on Friday it had started buying less foreign currency on Wednesday, the first day of the rouble’s slide. As a reminder, Russia recently liquidated the bulk of its US Treasurys holdings over the past two months as it sought to diversify away from the dollar.

TIC%20Russia.jpg

For now, the fate of the U.S. bill Medvedev was referring to is not certain. Congress will not be back in Washington until September, and even then, congressional aides said they did not expect the measure would pass in its entirety.

https://www.zerohedge.com/news/2018-08-10/russian-pm-new-us-sanctions-would-be-declaration-economic-war

bostonangler · August 10, 2018

I hope this is all political positioning. If this comes to pass we are screwed

B/A

Butifldrm · August 17, 2018

US dollar on its way out as world's lead currency?

Tumbling emerging market currencies, including the Russian ruble, have caused Moscow to publicly wish for the "demise" of the greenback from global finance. Lars Halter examines how realistic such a wish actually is.

If the stability of a currency is entirely linked to the confidence in the issuer of the currency, then it does not look good for the US dollar. In Washington, US President Donald Trump appears to be busy fighting against the rest of the world.

His administration has kick-started a fierce trade conflict with China and other countries by slapping on tariffs and engaging in protectionist rhetoric.

In recent weeks, Trump has also picked quarrels with Russia and Turkey. But the two are striking back by hitting Washington where it hurts. Both Moscow and Ankara are questioning the global role of the US dollar.

Read more: US tariffs on China: Trump administration adds $16 billion

The beginnings

The global advance of the American currency began on February 14, 1945, on the USS Quincy, which was anchored in the Great Bitter Lake, near the Suez Canal in Egypt. In the belly of the heavy cruiser, a reception room had been set up: A few hastily arranged armchairs and tables on an oriental rug, in addition to the stars and stripes, all against a background of navy bulkheads.

Only a handful of people, including then US President Franklin D. Roosevelt and Saudi King Ibn Saud, were present. During their talks, Roosevelt promised military protection to his Saudi guest in exchange for secure access to Saudi oil and settling oil sales in dollars.

The deal meant that in just over a decade after the US effectively abandoned the gold standard in 1933, the greenback was once again tied to a commodity: This time it was black gold (oil).

Despite periodic tensions in US-Saudi relations, the pact has survived. And as demand for oil rose rapidly in the subsequent decades, the demand for US dollars also climbed. An increasing number of cross-border transactions began to be settled in the American currency.

That is still the case today. The International Monetary Fund (IMF) estimates that around 62 percent of the world's currency reserves are held in dollars. By comparison, the euro makes up about 20 percent of the currency reserves, followed by the yen and the pound sterling, which account for less than five percent.

The US dollar also plays a crucial role in forex transactions, with the currency accounting for 85 percent of the international currency exchange.

The US Federal Reserve has always supported the dollar's role as the leader of the world's currencies and provided sufficient liquidity, which has been a factor in ensuring its dominance.

During their talks, Roosevelt promised military protection to his Saudi guest in exchange for secure access to Saudi oil

A safe haven?

The dollar's liquidity makes it appealing for investors, who came to regard it as a safe haven — after all, the currency can be traded quickly.

This can sometimes trigger ugly situations: For instance, when investors sense economic trouble, they rush toward the dollar, even though the biggest threats to the global economy stem from the US.

This was the case for the most part during the 2007-08 financial crisis, and even during the regular standoffs in the US Congress over the debt ceiling.

Economist Barry Eichengreen describes it as an "outrageous privilege" for the US. And yet he sees no alternative. That's because the two main potential rivals to the dollar, the euro and the Chinese renminbi, have problems of their own. Eichengreen said the euro is a currency without a state, and the renminbi is a currency with too much state.

In other words, the expert explained, if push comes to shove, there will not be any national government to back up the euro and ensure monetary and financial stability. The Chinese currency, meanwhile, is controlled by the political leadership in Beijing and not by market forces.

Read more: Will Turkey's economic woes reach Europe?

Less dollar dominance not inconceivable

It's difficult to find any consistency when it comes to Trump's rhetoric vis-a-vis currencies. He doesn't shy away from accusing other countries, particularly China, of currency manipulation. But then, with his tweets, he puts pressure on the Fed to follow his recommendations on monetary policy.

Although the US central bank has so far been pursuing a steady course, the White House's recommendations and demands regarding interest and exchange rates create uncertainty as to whether one can always rely on the political neutrality of the Fed.

Furthermore, no one wants to bet on Trump's economic policies. His actions too often contradict his rhetoric: He speaks of large trade agreements, but has so far only withdrawn the US from them. Not one of his promised new deals has materialized. A trade dispute with China, uncertainty with regard to his dealings with Russia and now a dispute with Turkey, which is causing a plunge in the value of the lira. In the current economic climate, the dollar doesn't seem to be a safe bet.

Against this backdrop, the question remains: Which currency in future could give the dollar a run for its money?

Russia and Turkey have announced that they want to return to national currencies in international trade — they want to avoid the detour via the dollar.

If other countries agree, the dollar could become less dominant in global trade in future, say some observers. Still, the US currency will likely remain the strongest individual national currency as long as the US enjoys greater investor confidence than that enjoyed by other countries.

https://www.dw.com/en/us-dollar-on-its-way-out-as-worlds-lead-currency/a-45111800

Butifldrm · August 17, 2018

Sign Up Sign I

Political Rivalry Leads To US Dollar Reserve Currency Replacement Idea Being Raised Again

August 16, 18 by Albert Robinson

It's an idea that has been raised from time to time in the past. The last time that I recall it was suggested was following the 2008 financial crisis.

The idea is to use other currencies instead of the US dollar for the purchase/sale of diamonds – as well as a wide range of internationally traded commodities. Russia's ALROSA, the world's leading rough diamond miner by volume, announced that it has tested a payment mechanism with foreign clients using the Russian currency, the ruble.

Transactions were conducted with clients from China and India, it reported. If necessary, the company said, it is ready to use a ruble payment scheme in the future.

The miner said that its Chinese client paid for goods purchased at an auction of special-size rough diamonds (+10.8 carats) held by ALROSA in Hong Kong in June. By agreement with the winner of one of the lots, the contract provided for the payment in Russian rubles instead of US dollars. Payment was made through the VTB bank branch in Shanghai.

Meanwhile, a long-term ALROSA client from India paid for one of the scheduled diamond supplies under the contract in Russian rubles. In this case, the buyer transferred the amount in rubles from his account in another Russian bank.

According to Evgeny Agureev, Director of USO ALROSA, payment via foreign branches of Russian banks makes it possible to speed-up and simplify the payment process, as there is no more need to use correspondent accounts with other banks. "The practice in the international rough diamond market provides for settlements in US dollars between sellers and buyers of rough diamonds. We have tested an alternative payment scheme to understand the possibility of its implementation and nuances to be taken into consideration. The experience is positive, so we will apply it on an as-needed basis," he said.

Interestingly, he noted that ALROSA's Supervisory Board instructed the company's management to consider the possibility of ruble payment for rough diamond sales. Since business and government are closely related in Russia and ALROSA's top people are all closely connected with government and former officials, one can safely say that this idea is no coincidence.

On Tuesday, Russian Foreign Minister Sergei Lavrov proposed that countries facing US sanctions, such as Iran, Turkey and Russia, may start doing business in their national currencies, and suggested that the reign of the US dollar as the international reserve currency may be numbered. To suggest that this is entering the sphere of fantasy land may sound a little harsh, though it is accurate.

For obvious reasons, the US dollar has long held sway as the currency of international trading, and that leads to a huge amount of resentment among the United States' economic and political rivals. With the weakness of the economies of Turkey and Iran – especially right now – as well as Russia, the idea that they can somehow topple the mighty greenback is particularly ridiculous. Turkey's lira has crashed by 45% this year, Iran's rial has halved in value in less than a year and the ruble is down 15% so far this year against the dollar. With volatility being the bugbear of the markets and business, the idea that companies are likely to want to acquire or hold the declining lira, rial or rubles for payment is pie-in-the-sky territory. Similarly, the idea that they would prefer to receive their own currency rather than hard foreign currency earnings – especially at a time when the value of the dollar is rising – is a fiction.

Those country's leaders should head for the backstreets of their towns and cities and see how many of their citizens are desperately trying to put together enough of their national currencies to buy some dollar bills in order to preserve the value of their savings. They are living a reality with which their political leaders are totally unfamiliar.

The United States remains by far the world's most powerful economy and its financial sanctions have such clout that international businesses – and especially banks – have no interest whatsoever in flouting them. The idea that this is a time to start playing with the notion of using declining currencies for international trade smacks of a kind of childish desperation.

http://www.idexonline.com/Memo?Id=44161

Butifldrm · August 21, 2018

Russia Abandons Bond Sale "Due To Market Volatility"

by Tyler Durden

Tue, 08/21/2018 - 09:50

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Whether it is explicitly US sanctions or the implicit uncertainty injected into global markets by a dollar-squeezing Fed, the latest impact of global tightening has hit Russia head on as it has been forced to abandon its planned weekly bond auction tomorrow.

According to the Russian Finance Ministry's website, it has decided not to hold primary debt auctions, scheduled for Aug. 22, due to sharp increase in market volatility.

The halt is the first since April.

Who can blame them with 10Y Russia OFZ (ruble-denominated) bond yields now above 8.5% (back above pre-Trump levels)...

Local Russian yields are now higher than Mexico's and just lower than South Africa's...

With stress leaking to its banking system...

And the Ruble sliding back to its weakest since April 2016...

The Russian Finance Ministry also confirmed it will resume auctions on regular basis once the debt market situation stabilizes.

https://www.zerohedge.com/news/2018-08-21/russia-abandons-bond-sale-due-market-volatility

Butifldrm · August 22, 2018

Germany Calls For Global Payment System Independent Of The US

by Tyler Durden

Wed, 08/22/2018 - 05:33

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In a stunning vote of "no confidence" in the US monopoly over global payment infrastructure, Germany’s foreign minister Heiko Maas called for the creation of a new payments system independent of the US that would allow Brussels to be independent in its financial operations from Washington and as a means of rescuing the nuclear deal between Iran and the west.

Writing in the German daily Handelsblatt, Maas said "Europe should not allow the US to act over our heads and at our expense. For that reason it’s essential that we strengthen European autonomy by establishing payment channels that are independent of the US, creating a European Monetary Fund and building up an independent Swift system," he wrote, cited by the FT.

Maas said it was vital for Europe to stick with the Iran deal. "Every day the agreement continues to exist is better than the highly explosive crisis that otherwise threatens the Middle East," he said, with the unspoken message was even clearer: Europe no longer wants to be a vassal state to US monopoly over global payments, and will now aggressively pursue its own "Swift" network that is not subservient to Washington's every whim.

German foreign minister Heiko Maas

Swift, a Belgium-based global payment network, enables financial institutions worldwide to send and receive information about financial transactions. The system’s management claims Swift is politically neutral and independent, although it has previously been used to block transactions and enforce US sanctions against various countries, most notably Iran. In 2012, the Danish newspaper Berlingske wrote that US authorities managed to seize money being transferred from a Danish businessman to a German bank for a batch of US-sanctioned Cuban cigars. The transaction was made in US dollars, which allowed Washington to block it.

According to Thorsten Benner, director of the Global Public Policy Institute, a Berlin-based think-tank, Maas’s intervention was the “strongest call yet for EU financial and monetary autonomy vis-à-vis US."

The German foreign minister’s article highlights the depth of the dilemma facing European politicians as they struggle to keep the Iran deal alive while coping with the fallout of US sanctions imposed by Mr Trump against companies doing business with Tehran.

Maas also called for the creation of a “balanced partnership” with the US in which the Europeans filled the gaps left where the US withdrew from the world. Europe must, he said, “form a counterweight when the US crosses red lines”.

As the FT adds, the EU has vowed to protect European businesses from punitive measures adopted by Washington, but that has failed to convince EU companies, who are more concerned about maintaining their access to the lucrative US market than in the more modest opportunities presented by Iran.

Last month Washington rebuffed a high-level European plea to exempt crucial industries from sanctions. Mike Pompeo, US secretary of state, and Steven Mnuchin, Treasury secretary, formally rejected an appeal for carve-outs in finance, energy and healthcare made by ministers from Germany, France, the UK and the EU.

Swift is also affected: unless it wins an exemption from sanctions, it will be required by the US to cut off targeted Iranian banks from its network by early November or face possible countermeasures against both its board members and the financial institutions that employ them. These could include asset freezes and US travel bans for the individuals, and restrictions on banks’ ability to do business in the US.

Maas’s stark warning against US domination of global payments comes with relations between Germany and the US in their worst state for decades. Mr Trump has chastised Berlin over its large trade surplus, its relatively low military spending and its support for Nord Stream 2, a new gas pipeline that will bring Russian gas directly to Germany.

Meanwhile, Berlin has looked on in dismay as Mr Trump has withdrawn the US from the Iran deal and the Paris climate treaty, imposed import tariffs on EU steel and aluminium and appeared to question America’s commitment to Nato.

In short: Europe has finally had enough and it plans on hitting back at Trump where it truly hurts: the money.

https://www.zerohedge.com/news/2018-08-21/germany-calls-global-payment-system-independent-us

bostonangler · August 22, 2018

Wow!

B/A

Butifldrm · August 25, 2018

"Thank God This Is Happening" Russia Says Time Has Come To Ditch The Dollar

by Tyler Durden

Fri, 08/24/2018 - 22:44

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With the US unveiling a new set of sanctions against Russia on Friday, Moscow said it would definitely respond to Washington’s latest sanctions and, in particular, it is accelerating efforts to abandon the American currency in trade transactions, said Russia's Deputy Foreign Minister Sergei Ryabkov.

"The time has come when we need to go from words to actions, and get rid of the dollar as a means of mutual settlements, and look for other alternatives," he said in an interview with International Affairs magazine, quoted by RT.

"Thank God, this is happening, and we will speed up this work,” Ryabkov said, explaining the move would come in addition to other “retaliatory measures” as a response to a growing list of US sanctions.

Previously, Russian Energy Minister Aleksandr Novak said that a growing number of countries are interested in replacing the dollar as a medium in global oil trades and other transactions.

“There is a common understanding that we need to move towards the use of national currencies in our settlements. There is a need for this, as well as the wish of the parties,” Novak said.

According to the minister, it concerns both Turkey and Iran, with more countries likely to join the growing dedollarization wave.

“We are considering an option of payment in national currencies with them. This requires certain adjustments in the financial, economic, and banking sectors” to accomplish. Last week, we reported that the Kremlin was interested in trading with Ankara using the Russian ruble and the Turkish lira. India has also vowed to pay for Iranian oil in rupees.

Meanwhile, the world’s second-largest economy and Washington's trade war nemesis, China, has been taking steps to challenge the greenback's dominance with the launch of an oil futures contract backed by Chinese currency, the petro-yuan. China and Iran have already agreed to stop using the dollar in global trade as China has ramped up purchases of Iranian oil in defiance of US sanctions.

https://www.zerohedge.com/news/2018-08-24/thank-god-happening-russia-says-time-has-come-ditch-dollar

Butifldrm · August 25, 2018

Russia Vows To Speed Up Efforts To Stop Using U.S. Dollar In Trade

August 24, 2018 04:26 GMT

RFE/RL

Russian Deputy Foreign Minister Sergei Ryabkov

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In response to U.S. sanctions, Russia is vowing to speed up its efforts along with China and Iran to stop using the U.S. dollar in global trade, particularly in oil sales that are vital to both Moscow and Tehran.

Russian Deputy Foreign Minister Sergei Ryabkov in an interview with International Affairs magazine on August 23 said "the time has come when we need to go from words to actions and get rid of the dollar as a means of mutual settlements, and look for other alternatives," Russian news agencies reported.

"Thank God, this is happening, and we will speed up this work," in addition to taking other "retaliatory measures" in response to a growing list of U.S. sanctions, he said.

Iran, which has also been targeted with a slew of U.S. sanctions this year, has similar reasons to want to abandon the U.S. dollar, which for decades has been the world's main reserve currency and the medium of exchange for trade in oil, copper, and other vital commodities. Both Iran and Russia are major oil exporters whose oil industries and exports have been targeted by U.S. sanctions.

China has for years sought to depose the dollar as the reigning global currency and currently is embroiled in a major trade struggle with the United States, with both sides ratcheting up tariffs on each other's exports. China's yuan has sometimes been mentioned as a possible substitute for the dollar in global trading.

Russian Energy Minister Aleksandr Novak recently noted that a growing number of countries are interested in replacing the dollar as a medium for settling global oil trades and other transactions.

“There is a common understanding that we need to move towards the use of national currencies in our settlements. There is a need for this, as well as the wish of the parties,” Novak said. “This concerns both Turkey and Iran. We are considering an option of payment in national currencies with them. This requires certain adjustments in the financial, economic, and banking sectors” to accomplish, he said.

Iran is moving to ban the use of the U.S. dollar in trade, in light of U.S. sanctions that prohibit it from using the dollar. And last year, Turkey and Iran signed an agreement to use their own currencies for trading purposes. As with Russia and Iran, U.S. relations with Turkey have soured since President Donald Trump took office last year.

With U.S. sanctions on Iran's oil sector due to go into effect in November, Iran has signed several agreements with other countries to use other currencies and even cryptocurrencies in trade deals. Tehran is currently in negotiations with Russia to use their national currencies in trade.

During a meeting with Russian President Vladimir Putin last autumn, Iranian Supreme Leader Ayatollah Ali Khamenei said that joint efforts to drop the U.S. dollar in bilateral trade were the best way to get around -- and respond to -- U.S. sanctions.

He also told the Russian leader that using other currencies besides the dollar more frequently would “isolate the Americans.”

While some analysts say the U.S. sanctions are highlighting the leverage that the United States has over Russia, Iran, and other countries' economies because of its dominant currency, others say that using the U.S. dollar as a weapon could backfire on Washington and eventually lead to the toppling of the currency's status in the world.

"The potential use of the U.S. dollar as a baseball bat has been evident for more than a decade for Russians, Chinese, and Iranians. For this reason, they have been exchanging their dollars for other currencies for years," said Federico Pieraccini, analyst with the Strategic Culture Foundation.

By "weaponizing" the dollar, he said that Washington risks prompting more and more countries to consider abandoning it as a medium of world trade in a move he said could prove "devastating" for "Washington's economic power" in the long run.

https://www.rferl.org/a/russia-vows-speed-up-efforts-stop-using-us-dollar-oil-trade-global-commodities-ryabkov/29450560.html

md11fr8dawg · August 25, 2018

What are you gonna replace it with Russia, that worthless currency of yours?? Or maybe that great Euro, or maybe the Iranian Rial ( yeah that's a good one) or maybe the Yuan which China manipulates at will. Up until 1945 England was the world's reserve currency. They lost that status to the US after the war and they seem to have made it pretty well. Would have made it much better if they could control the socialists in their country.

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