Best of the Week
Most Popular
1.The Brexit War! EU Fearing Collapse Set to Stoke Scottish Independence Proxy War - Nadeem_Walayat
2.London Terror Attack Red Herring, Real Issue is Age of Reason vs Religion - Nadeem_Walayat
3.The BrExit War, Game Theory Strategy for What UK Should Do to Win - Nadeem_Walayat
4.Goldman Sachs Backing A Copper Boom In 2017 - OilPrice_Com
5.Trump to Fire 50 US Cruise Missiles To Erase Syrian Chemical Attack Air Base, China Next? - Nadeem_Walayat
6.US Stock Market Consolidation Time - Rambus_Chartology
7.Stock Market Investors Stupid is as Stupid Goes - James_Quinn
8.Gold in Fed Interest Rate Hike Cycles- Zeal_LLC
9.The BrExit War - Britain Intelligence Super Power Covert War With the EU - Nadeem_Walayat
10.Marc Faber: Euro to Strengthen, Dollar to Weaken, Gold and Emerging Markets to Outperform - MoneyMetals
Last 7 days
What A War With North Korea Would Look Like - 25th Apr 17
Pensions Are On The Way Out But Retirement Funds Are Not Working Either - 25th Apr 17
Frank Holmes : Gold Could Hit $1,500 in 2017 Amid Imbalances & Weak Supply - 25th Apr 17
3 Reasons Why “Spring Forward, Fall Back” Also Applies To Gold - 25th Apr 17
SPX may be Aiming at the Cycle Top Resistance - 25th Apr 17
Walmart Stock Extending Higher - Elliott Wave Trend Forecast - 25th Apr 17
Google Panics and KILLS YouTube to Appease Mainstream Media and Corporate Advertisers - 25th Apr 17
Gold Price Is 1% Shy of Ripping Higher - 25th Apr 17
Exchange-Traded Funds Make Decisions Easy - 25th Apr 17
Trump Is Among The Institutionally Weakest National Leaders In The World - 25th Apr 17
3 Maps That Explain the Geopolitics of Nuclear Weapons - 25th Apr 17
Risk on Stock Market French Election Euphoria - 24th Apr 17
Fear Campaign Against Americans Continues Nuclear Attack Drills in New York City - 24th Apr 17
Is the Stock Market Bounce Over? - 24th Apr 17
This Could Be One Of the Biggest Winners Of The Electric Car Boom - 24th Apr 17
Le Pen Shifts Political Landscape- The Rise of New French Gaullism  - 24th Apr 17
IMF Says Austerity Is Over - Surplus or Stimulus - 24th Apr 17
EURUSD at a Critical Point in Wave Structure - 23rd Apr 17
Stock Market Grand Super Cycle Overview While SPX Correction Continues - 23rd Apr 17
Robert Prechter Talks About Elliott Waves and His New Book - 23rd Apr 17
Le Pen, Melenchon French Election Stock, Bond and Euro Markets Crash - 22nd Apr 17
Why You Are Not An Investor - 22nd Apr 17
Gold Price Upleg Momentum Building - 22nd Apr 17
Why Now Gold and Silver Precious Metals? - 22nd Apr 17
4 Maps That Signal Central Asia Is at Risk of War - 22nd Apr 17
5 Key Steps For A Comfortable Retirement From Former Wall Street Trader - 22nd Apr 17
Can Marine Le Pen Win? French Presidential Election Forecast 2017 - 21st Apr 17
Why Stock Market Investors May Soon Be In For A Rude Awakening - 21st Apr 17
Median US Household’s Wealth Has Declined by 40% Since 2007 - 21st Apr 17
Silver, Platinum and Palladium as Investments – Research Shows Diversification Benefit - 21st Apr 17
U.S. Stock Market and Gold, Post Tomahawks and MOAB - 21st Apr 17
An In Depth Look at the Precious Metals Complex - 20th Apr 17
The Real Story of China’s Strong First-Quarter Growth - 20th Apr 17
3 Types Of Life-Changing Crisis That Make You Wish You Had Some Gold - 20th Apr 17
The Truth is a Dangerous Thing - 20th Apr 17
2 Choke Points That Threaten Oil Trade Between Persian Gulf And East Asia - 20th Apr 17
Gold’s Next Downside Target Is Around $700… Even if It Breaks Up First - 19th Apr 17
SPX May be Completing its Corrective Pattern - 19th Apr 17
Silver Production Has “Huge Decline” In 2nd Largest Producer Peru - 19th Apr 17
Soothing East Asia's Nerves as Trump's Administration Reaffirms US Power in Asia-Pacific - 19th Apr 17
The Brexit War - Article 50 Triggered, General Election 2017 Called - Let the Games Begin! - 19th Apr 17

Market Oracle FREE Newsletter

Why 95% of Traders Fail

Russia and China May Destroy Petrodollar

Politics / US Dollar Sep 17, 2014 - 07:02 PM GMT

By: Pravda

Politics

Actions of the West in Eastern Europe and ongoing pressure on Russia may eventually intensify the movement to combat the petrodollar. The biggest danger to the oil currency is likely to be related to China and its plans to increase the role of the yuan in the world.

Russia and China currently discuss the creation of a system of inter-bank transactions, which would be an analogue to the international system of bank transfers - SWIFT. This was announced by First Deputy Prime Minister Igor Shuvalov after talks in Beijing.


"Yes, this idea was discussed and supported," he said, when asked about the possible creation of an analogue to SWIFT in bank transactions between China and Russia.

SWIFT is an international interbank information transfer and payment system. The system is also known as SWIFT-BIC (Bank Identifier Codes), BIC code, SWIFT ID or SWIFT code. The system was founded in 1973; 239 banks from 15 countries acted as co-founders.

SWIFT is an association established under the Belgian law. More than 9,000 banks from 209 countries (as of 2010) act as founders. Headquartered in Brussels, Belgium. The number of SWIFT users exceeds 10,000 organizations, including about 1,000 corporations.

Each bank in the system has a unique SWIFT-code. To make a payment in Europe, it is enough to know the SWIFT code of the bank and the IBAN-code of the recipient. SWIFT processes over one million remittances daily.

After September 11, 2001, the CIA and the US Treasury gained access to SWIFT information. Annually, SWIFT processes about 2.5 billion payment orders.

Curiously, the UK proposed limiting Russia's access to SWIFT for only two weeks. Russia once again shows that it may abandon the dollar, if necessary, on its own terms.

The Russian authorities intended to reduce the dependence of the financial market on SWIFT after the first wave of US sanctions, when international payment systems Visa and MasterCard refused to work with a number of Russian banks.

According to Shuvalov, Russia also discussed the creation of an independent rating agency with China. Specific proposals are to be made by the end of 2014.

With regard to China's payment system UnionPay, which is expected to become one of the partners of the Russian national payment system, the system is ready to cooperate fully and provide necessary infrastructure.

"As for the payment system, it is clear what to do and how to move on, then the settlement system by analogy with SWIFT is an idea that we all liked today. We proposed it, and took it positively. We will begin to work it through," said the first deputy prime minister.

All this indicates that the Eurasian Economic Union will gradually abandon the dollar. Barack Obama's presidency may go down in history as the time period, when the dollar began to lose its influence. Obama already faces accusations of destroying the foreign policy of the United States, let alone the fact that he is referred to as the worst president in the history of the United States. The end of dollar hegemony will undermine the status of the world's reserve currency, which will trigger the fast and uncontrolled collapse of the American empire, zerohedge.com website said.

As soon as Russia and China show that it is really possible to abandon the dollar, especially given the fact that the United States is pushing for this, other countries will follow their example.

Pravda.Ru

Pravda.ru

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

Pravda Archive

© 2005-2016 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

Catching a Falling Financial Knife