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A currency alliance between China and Russia to displace the dollar
In the economy of October 17, 2017
In a move towards building a new monetary system that competes with the existing monetary system since the Second World War and is dominated by the dollar, China is moving quickly to link its yuan exchange rate to gold in cooperation with Russia and the BRICS countries, India and South Africa, as well as the Silk Road States.
In the latest move towards the new monetary system, both the Russian Central Bank and the People's Bank of China (PBOC) have completed agreements on the establishment of an immediate yuan-ruble settlement system. It gradually paves the way for the yuan to turn into a currency linked to gold instead of the dollar.
The move is in the direction of China to internationalize the yuan and increase its share of the reserves of global central banks. Beijing also supports the yuan conversion plan through its gold bourse, which was founded in Shanghai in the beginning of the year. The precious metal is traded in Chinese currency and a gold-traded exchange is established in the gold-backed yuan, meaning that the oil deals that are handled can be seized with gold.
The new system works to settle all financial transactions and trade transactions between the two countries, in RMB and ruble immediately, without passing through a third currency or SWIFT.
The system is expected to be supported by gold, according to German-American professor F. William Andhill, in an article published by Russian news agency Sputnik a few days ago.
This is the first time that the yuan has been exchanged with a foreign currency directly and immediately and without the need for a monetary intermediary, according to a statement issued on Wednesday, the unit of the foreign exchange system at the Bank of China.
According to the statement, published on the website of the Chinese Central Bank's Foreign Exchange System Unit, the new system will allow immediate monetary adjustment from RMB to ruble or vice versa.
China and Russia have set up settlement offices in Beijing and Moscow. The statement pointed out that the Chinese central intends to do the same with the currencies of countries within the initiative "Belt and Road" in the future.
The "Belt and Road" initiative, a major economic project initiated by China in recent years, aims to fund projects worth $ 4 trillion and passes through about 60 countries. To date, China has spent nearly half a trillion dollars on its projects.
It is worth noting that China, for the purpose of establishing the gold-based yuan system, has established a special fund called the "Silk Road Gold Fund". Its main objective is to explore gold in these countries to increase their gold reserves in the cash reserve. Plans to turn to the gold standard in agreement with Russia.
It is expected that the financial and commercial settlement center of the two countries and the system of immediate exchange between the two currencies will help to increase the volume of trade and investment between the two countries and will gradually create in Russia a liquidity of the yuan that will contribute to the settlement of Chinese transactions in the future and reduce the currency exchange rate volatility by reducing their dependence on the dollar as a current criterion. World in Trade and Finance.
This means that China intends gradually and quietly to block the dollar as a trade settlement currency in many countries of the world in the coming years, a step also conducive to the internationalization of the yuan, that is to convert from domestic currency to international currency, taking advantage of their trade weight and surplus with countries And its huge balance of gold and the dollar.
Russia is a strategic country in this scheme in terms of the volume of gold production and dominance on the oil and natural gas market and its impact on OPEC countries, and the ongoing oil cooperation between Russian companies and Saudi Aramco.
The steps of the China-Russia monetary alliance began in April when the Russian central bank opened an office in Beijing to bypass the dollar as an international settlement currency in trade deals and set up a new standard for settling gold-based business transactions.
The monetary alliance between the two countries accelerated following the US embargo on Russia, the collapse of oil prices and its entry into a financial crisis, the only way out of which was to go to China and sign huge gas deals worth $ 400 billion with Chinese companies.
Russian Central Bank chief Vladimir Shapovolov said in April that the central banks of the two countries were working on a draft of their understanding to resolve some issues related to the Russian gold imports to China and details of the agreement would be announced soon. It was then understood that the new monetary agreement between the two countries dealt with a gold standard in trade.
"
Russia is the fourth gold producer in the world and China is the third largest producer of gold
"
Russia is the fourth gold producer in the world and China is the third largest producer of gold. According to data from the World Gold Council in London, Russia began to raise gold exports to China, also lifted its reserves of precious metal in the foreign exchange and reduced the dollar.
In the same regard, China has raised its imports of gold over the past two years. Which suggests that both countries trapped by the dollar are planning to build a new global financial system rival to the dollar.
This system is expected to be built on the gold standard. Although many economists and financial experts doubt the possibility of returning to the gold standard in the alternative monetary system of the current dysfunctional system, a baby is in the process of being planned by Moscow and Beijing.
China's gold reserves stood at 1658 tons at the end of June, up 57 percent from the last time reserves were revised more than six years ago, the central bank said in June.
These figures make China the sixth largest official gold holder in the world after the United States, Germany, the International Monetary Fund, Italy and France. China holds its gold holdings a secret state secret and does not report to the International Monetary Fund on its holdings on a monthly basis as most other countries do.
The Chinese central bank believes that gold holdings are important in managing the risk of the yuan and that it will increase its purchases of yellow metal. China produces about 453 tons of gold per year.
According to data recently announced by Moscow and published by the agency "Sputnik", the balance of Russia's gold rose to 1435.9 tons of gold, which accounts for 13.8% of the total reserves of international assets of foreign assets with high liquidity.
While China is under a fierce US attack from President Donald Trump over the currency, saying it manipulates the yuan's exchange rate, Russia is under siege and the possibility of tightening it, Beijing and Moscow are allied to remove the dollar from international trade. An alliance in which China uses its trade and cash surpluses of more than $ 3.2 trillion, while Moscow uses its weight in oil and gas markets and gold mines.
http://sngiq.net/wordpress/?p=92920
In the economy of October 17, 2017
In a move towards building a new monetary system that competes with the existing monetary system since the Second World War and is dominated by the dollar, China is moving quickly to link its yuan exchange rate to gold in cooperation with Russia and the BRICS countries, India and South Africa, as well as the Silk Road States.
In the latest move towards the new monetary system, both the Russian Central Bank and the People's Bank of China (PBOC) have completed agreements on the establishment of an immediate yuan-ruble settlement system. It gradually paves the way for the yuan to turn into a currency linked to gold instead of the dollar.
The move is in the direction of China to internationalize the yuan and increase its share of the reserves of global central banks. Beijing also supports the yuan conversion plan through its gold bourse, which was founded in Shanghai in the beginning of the year. The precious metal is traded in Chinese currency and a gold-traded exchange is established in the gold-backed yuan, meaning that the oil deals that are handled can be seized with gold.
The new system works to settle all financial transactions and trade transactions between the two countries, in RMB and ruble immediately, without passing through a third currency or SWIFT.
The system is expected to be supported by gold, according to German-American professor F. William Andhill, in an article published by Russian news agency Sputnik a few days ago.
This is the first time that the yuan has been exchanged with a foreign currency directly and immediately and without the need for a monetary intermediary, according to a statement issued on Wednesday, the unit of the foreign exchange system at the Bank of China.
According to the statement, published on the website of the Chinese Central Bank's Foreign Exchange System Unit, the new system will allow immediate monetary adjustment from RMB to ruble or vice versa.
China and Russia have set up settlement offices in Beijing and Moscow. The statement pointed out that the Chinese central intends to do the same with the currencies of countries within the initiative "Belt and Road" in the future.
The "Belt and Road" initiative, a major economic project initiated by China in recent years, aims to fund projects worth $ 4 trillion and passes through about 60 countries. To date, China has spent nearly half a trillion dollars on its projects.
It is worth noting that China, for the purpose of establishing the gold-based yuan system, has established a special fund called the "Silk Road Gold Fund". Its main objective is to explore gold in these countries to increase their gold reserves in the cash reserve. Plans to turn to the gold standard in agreement with Russia.
It is expected that the financial and commercial settlement center of the two countries and the system of immediate exchange between the two currencies will help to increase the volume of trade and investment between the two countries and will gradually create in Russia a liquidity of the yuan that will contribute to the settlement of Chinese transactions in the future and reduce the currency exchange rate volatility by reducing their dependence on the dollar as a current criterion. World in Trade and Finance.
This means that China intends gradually and quietly to block the dollar as a trade settlement currency in many countries of the world in the coming years, a step also conducive to the internationalization of the yuan, that is to convert from domestic currency to international currency, taking advantage of their trade weight and surplus with countries And its huge balance of gold and the dollar.
Russia is a strategic country in this scheme in terms of the volume of gold production and dominance on the oil and natural gas market and its impact on OPEC countries, and the ongoing oil cooperation between Russian companies and Saudi Aramco.
The steps of the China-Russia monetary alliance began in April when the Russian central bank opened an office in Beijing to bypass the dollar as an international settlement currency in trade deals and set up a new standard for settling gold-based business transactions.
The monetary alliance between the two countries accelerated following the US embargo on Russia, the collapse of oil prices and its entry into a financial crisis, the only way out of which was to go to China and sign huge gas deals worth $ 400 billion with Chinese companies.
Russian Central Bank chief Vladimir Shapovolov said in April that the central banks of the two countries were working on a draft of their understanding to resolve some issues related to the Russian gold imports to China and details of the agreement would be announced soon. It was then understood that the new monetary agreement between the two countries dealt with a gold standard in trade.
"
Russia is the fourth gold producer in the world and China is the third largest producer of gold
"
Russia is the fourth gold producer in the world and China is the third largest producer of gold. According to data from the World Gold Council in London, Russia began to raise gold exports to China, also lifted its reserves of precious metal in the foreign exchange and reduced the dollar.
In the same regard, China has raised its imports of gold over the past two years. Which suggests that both countries trapped by the dollar are planning to build a new global financial system rival to the dollar.
This system is expected to be built on the gold standard. Although many economists and financial experts doubt the possibility of returning to the gold standard in the alternative monetary system of the current dysfunctional system, a baby is in the process of being planned by Moscow and Beijing.
China's gold reserves stood at 1658 tons at the end of June, up 57 percent from the last time reserves were revised more than six years ago, the central bank said in June.
These figures make China the sixth largest official gold holder in the world after the United States, Germany, the International Monetary Fund, Italy and France. China holds its gold holdings a secret state secret and does not report to the International Monetary Fund on its holdings on a monthly basis as most other countries do.
The Chinese central bank believes that gold holdings are important in managing the risk of the yuan and that it will increase its purchases of yellow metal. China produces about 453 tons of gold per year.
According to data recently announced by Moscow and published by the agency "Sputnik", the balance of Russia's gold rose to 1435.9 tons of gold, which accounts for 13.8% of the total reserves of international assets of foreign assets with high liquidity.
While China is under a fierce US attack from President Donald Trump over the currency, saying it manipulates the yuan's exchange rate, Russia is under siege and the possibility of tightening it, Beijing and Moscow are allied to remove the dollar from international trade. An alliance in which China uses its trade and cash surpluses of more than $ 3.2 trillion, while Moscow uses its weight in oil and gas markets and gold mines.
http://sngiq.net/wordpress/?p=92920
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