Best of the Week
Most Popular
1. Market Decline Will Lead To Pension Collapse, USD Devaluation, And NWO - Raymond_Matison
2.Uber’s Nightmare Has Just Started - Stephen_McBride
3.Stock Market Crash Black Swan Event Set Up Sept 12th? - Brad_Gudgeon
4.GDow Stock Market Trend Forecast Update - Nadeem_Walayat
5.Gold Significant Correction Has Started - Clive_Maund
6.British Pound GBP vs Brexit Chaos Timeline - Nadeem_Walayat
7.Cameco Crash, Uranium Sector Won’t Catch a break - Richard_Mills
8.Recession 2020 Forecast : The New Risks & New Profits Of A Grand Experiment - Dan_Amerman
9.Gold When Global Insanity Prevails - Michael Ballanger
10.UK General Election Forecast 2019 - Betting Market Odds - Nadeem_Walayat
Last 7 days
Stock Market Stalls: Caution Ahead - 21st Oct 19
Stock Market Crash Setup? - 21st Oct 19
More Stock Market Congestion (Distribution) - 21st Oct 19
Revisiting “Black Monday Stock Market Crash October 19 1987 - 21st Oct 19
Land Rover Discovery Sports Out of Warranty Top Money Saving Tips - 21st Oct 19
Investing lessons from the 1987 Stock Market Crash From Who Beat it - 20th Oct 19
Trade Wars: Facts And Fallacies - 20th Oct 19
The Gold Stocks Correction and What Lays Ahead - 19th Oct 19
Gold during Global Monetary Ease - 19th Oct 19
US Treasury Bonds Pause Near Resistance Before The Next Rally - 18th Oct 19
The Biggest Housing Boom in US History Has Just Begun - 18th Oct 19
British Pound Brexit Chaos GBP Trend Forecast - 18th Oct 19
Stocks Don’t Care About Trump Impeachment - 17th Oct 19
Currencies Show A Shift to Safety And Maturity – What Does It Mean? - 17th Oct 19
Stock Market Future Projected Cycles - 17th Oct 19
Weekly SPX & Gold Price Cycle Report - 17th Oct 19
What Makes United Markets Capital Different From Other Online Brokers? - 17th Oct 19
Stock Market Dow Long-term Trend Analysis - 16th Oct 19
This Is Not a Money Printing Press - 16th Oct 19
Online Casino Operator LeoVegas is Optimistic about the Future - 16th Oct 19
Stock Market Dow Elliott Wave Analysis Forecast - Video - 16th Oct 19
$100 Silver Has Come And Gone - 16th Oct 19
Stock Market Roll Over Risk to New highs in S&P 500 - 16th Oct 19
10 Best Trading Schools and Courses for Students - 16th Oct 19
Dow Stock Market Short-term Trend Analysis - 15th Oct 19
The Many Aligning Signals in Gold - 15th Oct 19
Market Action Suggests Downside in Precious Metals - 15th Oct 19
US Major Stock Market Indexes Retest Critical Price Channel Resistance - 15th Oct 19
“Baghad Jerome” Powell Denies the Fed Is Using Financial Crisis Tools - 15th Oct 19
British Pound GBP Trend Analysis - 14th Oct 19
A Guide to Financing Your Next Car - 14th Oct 19
America's Ruling Class - Underestimating Them & Overestimating Us - 14th Oct 19
Stock Market Range Bound - 14th Oct 19
Gold, Silver Bonds - Inflation in the Offing? - 14th Oct 19
East-West Trade War: Never Take a Knife to a Gunfight - 14th Oct 19
Consider Precious Metals for Insurance First, Profit Second... - 14th Oct 19

Market Oracle FREE Newsletter

Stock Market Trend Forecast Oct - Dec 2019 by Nadeem Walayat

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

© 2005-2019 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

6 Critical Money Making Rules