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China, Russia quit dollar

j-mac

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St. Petersburg, Russia - China and Russia have decided to renounce the US dollar and resort to using their own currencies for bilateral trade, Premier Wen Jiabao and his Russian counterpart Vladimir Putin announced late on Tuesday.

Chinese experts said the move reflected closer relations between Beijing and Moscow and is not aimed at challenging the dollar, but to protect their domestic economies.
"About trade settlement, we have decided to use our own currencies," Putin said at a joint news conference with Wen in St. Petersburg.

The two countries were accustomed to using other currencies, especially the dollar, for bilateral trade. Since the financial crisis, however, high-ranking officials on both sides began to explore other possibilities.

The yuan has now started trading against the Russian rouble in the Chinese interbank market, while the renminbi will soon be allowed to trade against the rouble in Russia, Putin said.

"That has forged an important step in bilateral trade and it is a result of the consolidated financial systems of world countries," he said.

Putin made his remarks after a meeting with Wen. They also officiated at a signing ceremony for 12 documents, including energy cooperation.

China, Russia quit dollar


And some believe that the cold war ended....Silly people.


j-mac
 
It's a warlike action to back out of a currency that is clearly destined for collapse in the not too distance future?

I would call that sane fiscal policy. Although I'm not sure China can truly do it.
 
And some believe that the cold war ended....Silly people.


j-mac


The cold war is one issue; China and Russia deciding to trade in their own currencies when dealing with each other is another issue.

How do the two issues relate?
 
They just don't want to get caught holding US dollars in case the dollar becomes worthless. There's nothing cold war about their decision to use their own currencies.
 
The cold war is one issue; China and Russia deciding to trade in their own currencies when dealing with each other is another issue.

How do the two issues relate?

No, it really isn't separate when you consider that these moves are designed, or at least a side benefit of them is to weaken the dollar.

j-mac
 
They just don't want to get caught holding US dollars in case the dollar becomes worthless. There's nothing cold war about their decision to use their own currencies.

If that was such a concern then why yesterday when NK attacked SK did we see a surge in the dollar being bought?

j-mac
 
No, it really isn't separate when you consider that these moves are designed, or at least a side benefit of them is to weaken the dollar.

j-mac

A weaker dollar means more competitive exports which could actually be a good thing for businesses.

I remember when our dollar hit parity with yours and we actually lost some jobs because of it.
 
A weaker dollar means more competitive exports which could actually be a good thing for businesses.

I remember when our dollar hit parity with yours and we actually lost some jobs because of it.

No man you don't understand.

The commies are still out to get us. They're everywhere. Even in THE WHITE HOUSE!!!!

dun dun DUUNNN
 
No, it really isn't separate when you consider that these moves are designed, or at least a side benefit of them is to weaken the dollar.

j-mac

So do you count the US Federal Reserve as being on China and Russia's side as they have been involved in quantitative easing since 2008 and specifically trying to weaken the dollar to help exports and reduce the dollar debt to China?

What is the Fed doing, and how can it help the economy?
The central bank is embarking on the electronic equivalent of starting up its printing presses to create money to buy assets—in this case, U.S. Treasury securities, mostly notes. The practice is known as quantitative easing, and is designed to push down the notes' yields, as well as interest rates across debt markets that are closely tied to U.S. Treasury rates.

Lower borrowing costs should help some homeowners refinance their mortgages, even if many others don't qualify because of weak credit scores or diminished home equity. They should also help businesses, at least those that qualify for loans, access cheaper credit. The Fed figures buying up government debt will also push investors into stocks and corporate bonds, raising the value of those riskier assets, and weaken the dollar, helping U.S. exporters.
 
China made a similar agreement with Brazil. Are those Brazilans out to get us too?

Quite possibly the world according to J-Mac.

world-america1.jpg
 
I remember when our dollar hit parity with yours and we actually lost some jobs because of it.

Canada has currency now? Cool. I thought you just traded in touks.
 
Actually we trade in Weed :2razz: The currency is just a cover.


LOL I have a good friend from BC down here. He is always getting recipes from his relatives up there.
 
Just curious.

Why are the people who are quick to say the the world resents the United States also quick to dismiss that any part of the world might be trying to act against the United States?
 
The cold war is one issue; China and Russia deciding to trade in their own currencies when dealing with each other is another issue.

How do the two issues relate?

Good now they can cheat each other on currency valuation. :lamo
 
two countries as powerful as china and russia, the dwindling value of the us dollar its suprising that they were still using it in international trade by now anyway
 
two countries as powerful as china and russia, the dwindling value of the us dollar its suprising that they were still using it in international trade by now anyway

And whose currency is "valuable" by chance?
 
And some believe that the cold war ended....Silly people.


j-mac

Of course the "cold war" never ended. We certainly did not stop trying to encircle and weaken Russia. The balance of power just shifted even more in our favor than it already had. However, here China is just doing what it has been doing for a while and that is diversifying. Any good investment manager will tell you that you need to diversify. As for Russia, well yeah that is a power-play.
 
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