ECON How much of the World is ditching the Dollar as reserve currency (and what it might mean for us)

jward

jward

passin' thru
Today we've seen India and Malaysia join the growing group of countries that are moving beyond the dollar, a few days ago it was China and Brazil. Various posters have noted that this topic is likely to expand in the days ahead, both in # of countries who follow such courses of action, and in the impact we will experience domestically. Twas suggested that we might want to be sure these events did not get lost in all the other big events occurring daily, so though I'll use today's move beyond the dollar by India and Malaysia as the OP, please feel free to document other such changes in the global financial order.




India, Malaysia move beyond dollar to settle trade in INR​


Kallol Bhattacherjee


India and Malaysia have agreed to settle trade in the Indian rupees, the Ministry of External Affairs announced on on April 1, 2023.


India and Malaysia have agreed to settle trade in the Indian rupees, the Ministry of External Affairs announced on on April 1, 2023.
The announcement came in the backdrop of ongoing official efforts to Safeguard Indian trade from the impact of Ukraine crisis. The shift away from The U.S. dollar which has been the dominant reserve currency for international trade so far has added significance as it indicates India is willing to take concrete steps towards de-dollarisation of its international trade.

The Union Bank of India in a statement said that it has become the first bank in India to operationalise this option by opening a Special Rupee Vostro Account through its “corresponding bank” in Malaysia — India International Bank of Malaysia.
“Trade between India and Malaysia can now be settled in Indian Rupee (INR) in addition to the current modes of settlement in other currencies. This follows the decision by the Reserve Bank of India in July 2022 to allow the settlement of international trade in the Indian Rupee (INR). This initiative by RBI is aimed at facilitating the growth of global trade and to support the interests of the global trading community in Indian rupees, “ the Ministry of External Affairs announced.

Trading in the U.S. dollar has faced growing difficulties especially after the Russian economy was sanctioned by the western powers following President Vladimir Putin’s launch of a so-called “special military operation” against Ukraine on February 24, 2022. As a fallout of the sanctions and war, making payments to Russia in U.S. dollars became increasingly difficult which in turn triggered a search for solutions in national currencies and de-dollarisation worldwide.

For better trade​

On March 14, the government had informed the Rajya Sabha that, banks from eighteen countries were allowed by the Reserve Bank of India (RBI) to open Special Rupee Vostro Accounts (SRVAs) to settle payments in Indian rupees. Malaysia was one of the eighteen countries that figured in the statement laid out before the Rajya Sabha, by Minister of State for Finance Dr. Bhagwat Kishanrao Karad.
“India International Bank of Malaysia (IIBM), based in Kuala Lumpur, has operationalised this mechanism by opening a Special Rupee Vostro Account through its Corresponding Bank in India i.e. Union Bank of India,” the official announcement stated.

“This mechanism will allow the Indian and Malaysian traders to invoice the trade in Indian rupee and therefore achieve better pricing for goods and services traded. This mechanism is expected to also benefit the traders on both sides as they can directly trade in Indian Rupee and therefore save on currency conversion spreads,” a press note from the Union Bank of India informed on Saturday.
India-Malaysia bilateral trade touched $19.4 billion during 2021-22 and Saturday’s announcement is expected to help bilateral trade to overcome currency-related obstacles. Malaysia is the third largest trading partner of India in the ASEAN region, after Singapore and Indonesia that account for $30.1 billion and $26.1 billion bilateral trade with India respectively.

posted for fair use
www.thehindu.com

India, Malaysia move beyond dollar to settle trade in INR

The announcement came against the backdrop of ongoing official efforts to Safeguard Indian trade from the impact of Ukraine crisis
www.thehindu.com www.thehindu.com
 
jward

jward

passin' thru
Yesterday it was China and Brazil who reached an agreement to settle their trade in yuan. Below is the initial thread on that:

INTL - China Ditches US Dollars in New Brazil Agreement, Settles 1st LNG Trade in Yuan

China Ditches US Dollars in New Brazil Agreement, Settles 1st LNG Trade in Yuan Andrew Moran China and Brazil signed an agreement on March 29 that would abandon the U.S. dollar and carry out trade and financial transactions directly in yuan for reals—and vice...
www.timebomb2000.com www.timebomb2000.com
 
2dollarbill

2dollarbill

Veteran Member
jward, in a normal world, ie... 1968, the norms of economics were easily identified and followed by almost everyone worldwide. Today, the economic world is so corrupt that up is down and black is white. Knowing this, if you will,
other currencies trading and overcoming the greenback are just an illusion. Be careful when making financial moves based on what the rest of the world is doing and what is our best options going forward. I don't think there are any at this time. Just my 2 cents.

2db
 
Tristan

Tristan

Has No Life - Lives on TB

Washington’s ‘trigger-happy’ sanctions may push countries away from the dollar, says think tank​


www.cnbc.com

Washington’s ‘trigger-happy’ sanctions may push countries away from the dollar, says think tank

Central banks are starting to question whether reliance on the U.S. dollar is a good idea, said Gal Luft of the Institute for the Analysis of Global Security.
www.cnbc.com www.cnbc.com

Published Mon, Mar 21 202210:25 PM EDT
thumbnail

Abigail Ng
Points
  • Central banks are starting to question whether reliance on the U.S. dollar is a good idea, said Gal Luft of the Institute for the Analysis of Global Security.
  • “The United States has extended itself, has been extremely trigger-happy when it comes to the use of sanctions and other economic punishments,” he said.
  • Separately, Luft said the energy market is facing “a heart attack on top of a heart attack” with Covid and the Russia-Ukraine war.
The U.S. has been “extremely trigger-happy” with stinging economic measures, and central banks may decide to diversify their portfolio of foreign reserves instead of rel
“The United States has extended itself, has been extremely trigger-happy when it comes to the use of sanctions and other economic punishments,” he said.
The White House did not respond to a CNBC request for comment.
Luft said the U.S. took “unacceptable and unheard of steps” in recent weeks, such as effectively freezing Russia’s central bank reserves and disconnecting Russia from the interbank messaging system, SWIFT.
The overall picture is not good because what we’re getting today is a heart attack on top of a heart attack.
Gal Luft
co-director of the Institute for the Analysis of Global Security
Click to expand...
He said one in 10 countries in the world is under some form of U.S. sanctions.
“That has a cumulative effect and as a result, we see the dollar playing less and less of a role and portfolios of central banks,” Luft said.

His comments come after a Wall Street Journal report that Saudi Arabia is in accelerated talks with China to accept yuan instead of dollars for oil that Beijing buys.
Oil is typically priced in U.S. dollars, and that has allowed Washington to run “huge deficits,” he told CNBC’s “Street Signs Asia” on Monday.
Sanctions, however, make governments want to move away from the U.S. dollar, Luft said.
He said the American political class has a “lack of awareness” about the consequences of their actions.
“It’s like a bunch of kids running around with guns shooting all over the place without realizing what they’re actually doing, without looking at the cumulative impact of all of this,” he said.
“On the one hand, you are sanctioning right and left. On the other hand, you want countries to buy your Treasurys and finance your debt. That’s not a sustainable scenario,” he said.

‘Heart attack’ in energy​

Separately, Luft, who is senior advisor to the U.S. Energy Security Council, discussed the uncertainty in global energy markets.
“The overall picture is not good because what we’re getting today is a heart attack on top of a heart attack,” he said, pointing to the Covid pandemic and the Russia-Ukraine war, which could become “very nasty.”
“The combination of the two is really [a] double whammy,” he said.
Oil prices have fluctuated wildly over the past two years, plunging when the pandemic began and soaring when Russia invaded Ukraine in February.
Luft said there is a realignment in the world’s energy, financial and geopolitical systems, and the emergence of a “new world order.”
“The transition is never a happy one,” he said. “It’s always painful, but that’s the only way that the world can transform from one world order to another.”
ying heavily on the U.S. dollar, according to the co-director of the Institute for the Analysis of Global Security.

“Central banks are beginning to ask questions,” said Gal Luft of the Washington-based think tank, adding that they are wondering if reliance on the dollar and “putting all their eggs in one basket” is a smart idea.


“The United States has extended itself, has been extremely trigger-happy when it comes to the use of sanctions and other economic punishments,” he said.
The White House did not respond to a CNBC request for comment.
Luft said the U.S. took “unacceptable and unheard of steps” in recent weeks, such as effectively freezing Russia’s central bank reserves and disconnecting Russia from the interbank messaging system, SWIFT.
The overall picture is not good because what we’re getting today is a heart attack on top of a heart attack.
Gal Luft
co-director of the Institute for the Analysis of Global Security
Click to expand...
He said one in 10 countries in the world is under some form of U.S. sanctions.
“That has a cumulative effect and as a result, we see the dollar playing less and less of a role and portfolios of central banks,” Luft said.

His comments come after a Wall Street Journal report that Saudi Arabia is in accelerated talks with China to accept yuan instead of dollars for oil that Beijing buys.
Oil is typically priced in U.S. dollars, and that has allowed Washington to run “huge deficits,” he told CNBC’s “Street Signs Asia” on Monday.
Sanctions, however, make governments want to move away from the U.S. dollar, Luft said.
He said the American political class has a “lack of awareness” about the consequences of their actions.
“It’s like a bunch of kids running around with guns shooting all over the place without realizing what they’re actually doing, without looking at the cumulative impact of all of this,” he said.
“On the one hand, you are sanctioning right and left. On the other hand, you want countries to buy your Treasurys and finance your debt. That’s not a sustainable scenario,” he said.

‘Heart attack’ in energy​

Separately, Luft, who is senior advisor to the U.S. Energy Security Council, discussed the uncertainty in global energy markets.
“The overall picture is not good because what we’re getting today is a heart attack on top of a heart attack,” he said, pointing to the Covid pandemic and the Russia-Ukraine war, which could become “very nasty.”
“The combination of the two is really [a] double whammy,” he said.
Oil prices have fluctuated wildly over the past two years, plunging when the pandemic began and soaring when Russia invaded Ukraine in February.
Luft said there is a realignment in the world’s energy, financial and geopolitical systems, and the emergence of a “new world order.”
“The transition is never a happy one,” he said. “It’s always painful, but that’s the only way that the world can transform from one world order to another.”
 
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jward

jward

passin' thru

US bank trouble heralds end of dollar reserve system​


Bank crisis not a credit quality problem but stems instead from now-impossible task of financing America’s ever-expanding foreign debt
David P. Goldman
March 25, 2023

NEW YORK - The US banking system is broken. That doesn’t portend more high-profile failures like Credit Suisse. The central banks will keep moribund institutions on life support. But the era of dollar-based reserves and floating exchange rates that began on August 15, 1971, when the US severed the link between the dollar and gold, is coming to an end.

The pain will be transferred from the banks to the real economy, which will starve for credit. And the geopolitical consequences will be enormous. The seize-up of dollar credit will accelerate the shift to a multipolar reserve system, with advantage to China’s RMB as a competitor to the dollar.

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US bank trouble heralds end of dollar reserve system
 
jward

jward

passin' thru
jward said:
Yesterday it was China and Brazil who reached an agreement to settle their trade in yuan. Below is the initial thread on that:

Click to expand...

China and Brazil reach RMB-based trade deal​


Jeff Pao



A Rio-based Chinese bank will be connected to China’s cross-border interbank payment System (CIPS), an alternative to SWIFT, to support trade settlements between China and Brazil in renminbi.
Banco BOCOM BBM, a subsidiary of the Bank of Communications, China’s fifth largest bank, will be linked to CIPS to reduce the costs of commercial transactions with the direct exchange between Brazilian real and Chinese yuan, according to a statement released by the Brazilian Trade and Investment Promotion Agency (ApexBrasil).

The bank will become the first direct participant in the CIPS in South America while the Brazilian branch of the Industrial and Commercial Bank of China will become the renminbi clearing bank in Brazil, said ApexBrasil.
The announcement came after China and Brazil reportedly struck a deal to allow companies to settle their trade transactions in the two countries’ own currencies, ditching the United States dollar as an intermediary.
In early February, the People’s Bank of China (PBoC) and the Brazilian central bank signed a memorandum of cooperation to establish renminbi clearing arrangements in Brazil.

“These arrangements will help enterprises and financial institutions in both countries conduct cross-border transactions using the renminbi,” Mao Ning, a spokesperson of the Chinese foreign ministry, said Thursday. “They will also further facilitate bilateral trade and investment.”
Last year, Sino-Brazil bilateral trade rose 4.9% year-on-year to US$171.49 billion, according to the Chinese government. China’s exports to Brazil, including machines, computers, steel, textiles and autos, surged 15.7% to US$61.97 billion. China’s imports from Brazil, including iron ore, soybeans, crude oil and paper pulp, fell 0.4% to US$109.52 billion.

Business forum and agreements​

Originally, Brazilian President Luiz Inacio Lula da Silva planned to visit China between March 26 and 31 but he could not make it due to health reasons. On Wednesday, over 500 Brazilian and Chinese business people proceeded with a business forum in Beijing as scheduled.
Brazil’s Ministry of Foreign Affairs said in a statement that companies from both countries reached more than 20 agreements across different sectors, including energy, mining, agriculture and information-and-communication technology.

Those who erected the iconic welcoming statue of Christ the Redeemer in Rio de Janeiro probably didn’t have RMB in mind, but here comes the Chinese currency. Photo: Wikimedia Commons, Chensiyuan
More and more countries are willing to use the renminbi in clearing and payments, which is a significant step for yuan internationalization, Zhu Min, vice-chairman of the China Center for International Economic Exchanges, told the China Daily on the sidelines of the Boao Forum for Asia Annual Conference.
Zhu said the financial sanctions imposed by the US on Russia last year have shaken people’s confidence in the dollar, boosting the global use of other currencies, including the renminbi.

According to SWIFT, payments in renminbi accounted for 2.19% of global payments by value in February, up from 1.91% in January, ranking fifth among major currencies for the 13th month in a row.

Sanctions against Russia​

Since Russian troops began a full-scale invasion of Ukraine on February 24 last year, the United States and the European Union have imposed several rounds of sanctions on Russian officials, oligarchs, banks and the central bank.
Beijing refused to yield to what it called unilateral sanctions without authorization from the United Nations. State media said in March last year that China-Russia bilateral trade would continue to grow with the increasing use of CIPS.
Then, on March 21 of this year, Chinese President Xi Jinping and Russian President Vladimir Putin signed a joint declaration to boost diplomatic and economic ties. Both sides agreed to promote trade settlement in their own currencies.

Zhang Chao, a researcher at Taipei Institute, a Beijing-based think tank, told the National Business Daily that Brazil’s deal is an important milestone for yuan internationalization.
“There are three stages for renminbi internationalization– first is the global use of renminbi in small-scale international trade, then in commodity trade and finally the transformation of renminbi into a reserve currency,” Zhang said. “With Brazil’s deal, we have now completed the second stage.”
He said many countries lost confidence in the dollar due to the US sanctions against Russia and the recent US and European banking crisis. Without naming a particular country, he said China has been buying crude oil in the gulf in renminbi.

The National Business Daily said China is trading with Iraq and Pakistan in renminbi. Chinese media said previously that China is buying crude oil from Iran, which has been the target of sanctions by the US since 2018. An Iranian minister said in February that “a certain part of exchanges in Iran’s trade with China has been carried out in renminbi.”
China has previously proposed to pay Saudi Arabian oil in renminbi but the progress of the discussion remains slow.
On March 16, an online post claimed that Saudi Arabia and Iran had agreed to settle oil trade with China in renminbi. But Chinese media later found out that it was fake news.

Convertibility of renminbi​

Most Chinese newspapers said Friday that the Sino-Brazil deal will be a heavy blow to the US dollar hegemony. But some media pointed out that it will take some time for Brazilian exporters to become more willing to receive yuan.
Analysts have said that most natural resource sellers still prefer to receive dollars and euros, instead of renminbi, which lacks convertibility and investment tools. They said some companies choose to receive renminbi as they need to purchase Chinese products, such as machines and autos.

To provide renminbi holders with more investment tools, the Hong Kong stock exchange said last December that it would introduce a Hong Kong dollar-renminbi dual counter model, which will allow people to buy Hong Kong stocks directly in renminbi. So far seven listed firms have applied to list their shares in yuan but the program has not yet commenced.
Read: China welcomes Russian firms to trade with RMB
asiatimes.com

China and Brazil reach RMB-based trade deal

A Rio-based Chinese bank will be connected to China’s cross-border interbank payment System (CIPS), an alternative to SWIFT, to support trade settlements between China and Brazil in renminbi. Banco…
asiatimes.com asiatimes.com
 
Bps1691

Bps1691

Veteran Member
WHEN the petro dollar is replaced the USA economy is dead!

Every since it was established the rest of the world had to use our dollars in international trading. Our elites were in the driver seat and have abused that power and we as a country have pushed the real production power of making in demand needed materials and products overseas to the low cost labor countries.

We make very little of what we need as a country. Our dollar dies those countries who do produce these needed materials and products will no longer sell to us because they no longer need dollars to settle trades to everyone but the USA.

The means to make Medicine, metals, clothing, even something as basic as foot ware can’t be made here because the elites have closed the factories required to make them.

He’ll we can’t even make machines or the tooling required in quantity to produce most everything.

The collapse of the dollar is only a matter of time and draws closer every day.
 
subnet

subnet

Boot
Bps1691 said:
WHEN the petro dollar is replaced the USA economy is dead!

Every since it was established the rest of the world had to use our dollars in international trading. Our elites were in the driver seat and have abused that power and we as a country have pushed the real production power of making in demand needed materials and products overseas to the low cost labor countries.

We make very little of what we need as a country. Our dollar dies those countries who do produce these needed materials and products will no longer sell to us because they no longer need dollars to settle trades to everyone but the USA.

The means to make Medicine, metals, clothing, even something as basic as foot ware can’t be made here because the elites have closed the factories required to make them.

He’ll we can’t even make machines or the tooling required in quantity to produce most everything.

The collapse of the dollar is only a matter of time and draws closer every day.
Click to expand...
And being a service based economy, we are completly hosed.
 
J

Jeep

Veteran Member
Murt said:
the buzzards are coming home to roost

thanks joe---thanks a lot
Click to expand...
That is why he was put into the white house, notice I didn't say elected, to finish what obama had started on orders from their bosses. Soros, and the globalists are laughing at the destruction of the US. I don't know how we will come back from this even if a conservative is elected (which I doubt) in 2024 and the liberals will get their wish and in a couple of years, that wish will bite them in the butt.
 
Kathy in FL

Kathy in FL

Administrator
_______________
There is a way through this even if we convert to digital currency ... something most of the world operates on anyway these days with transfers, credit cards, debit cards, direct deposits, etc. However it won't be the way that Biden et al and the woke 'tards are doing it.

First and foremost we become energy independent ... and I'm not talking about a bunch of windmills and solar panels. By no longer needing to buy energy from other countries we'll cut several countries off at the knees. With cheaper fuel will come greater manufacturing capacity. That gets a little complicated as we'll have to import a lot of the resources to get this done, but it is possible.

The last is going to ouch the most but needs to happen. We cut the entitlement rolls. We cut them drastically. At the same time, for those that remain on the rolls, the ability to purchase non-necessities or non-essentials needs to collapse. A digital currency of some type will actually go far in making this happen due to the tracking nature. You can separate money from entitlements and any job they may have. We'll have to build in safety measures so the system isn't abused but that needs to be done now anyway.

I suspect, though I don't know how they plan on implementing it, that they want to include a universal basic income. This may replace entitlements. If this happens it needs to be tied to some type of work for pay, even if it is volunteer hours or community service hours. Abuse of the disability system also need to be ferreted out. Job training should be a requirement.

And don't even get me started on restructuring the income tax system in this country. Maybe we need to move to a VAT tax like most of the rest of the world.

I haven't even mentioned immigration reform but that's in there as well. And may come whether we expect it or not as the value of the US$ goes down.
 
hiwall

hiwall

Has No Life - Lives on TB
Kathy in FL said:
Within five years the currency used by the U.S. and likely several other countries will be solely digital in nature. They will be able to add or subtract zeros at will. It is inevitable at this point.
Click to expand...
I agree unless by that point there is no currency and no trade and no economy.
 
hiwall

hiwall

Has No Life - Lives on TB
Kathy in FL said:
There is a way through this even if we convert to digital currency ... something most of the world operates on anyway these days with transfers, credit cards, debit cards, direct deposits, etc. However it won't be the way that Biden et al and the woke 'tards are doing it.

First and foremost we become energy independent ... and I'm not talking about a bunch of windmills and solar panels. By no longer needing to buy energy from other countries we'll cut several countries off at the knees. With cheaper fuel will come greater manufacturing capacity. That gets a little complicated as we'll have to import a lot of the resources to get this done, but it is possible.

The last is going to ouch the most but needs to happen. We cut the entitlement rolls. We cut them drastically. At the same time, for those that remain on the rolls, the ability to purchase non-necessities or non-essentials needs to collapse. A digital currency of some type will actually go far in making this happen due to the tracking nature. You can separate money from entitlements and any job they may have. We'll have to build in safety measures so the system isn't abused but that needs to be done now anyway.

I suspect, though I don't know how they plan on implementing it, that they want to include a universal basic income. This may replace entitlements. If this happens it needs to be tied to some type of work for pay, even if it is volunteer hours or community service hours. Abuse of the disability system also need to be ferreted out. Job training should be a requirement.

And don't even get me started on restructuring the income tax system in this country. Maybe we need to move to a VAT tax like most of the rest of the world.

I haven't even mentioned immigration reform but that's in there as well. And may come whether we expect it or not as the value of the US$ goes down.
Click to expand...
That is quite a wish list.
 
Demodave

Demodave

Veteran member
Oil production and manufacturing are the two strengths that we could have again in the US. It would take some time, but we could overcome the current socialist regime by turning back to our strengths. That along with a return to Christian values and morality would put us back on track.

The current socialists would need to be removed! First things first!

Can we do this? Only if we get on our knees and repent, and turn from our wicked ways.
 
20Gauge

20Gauge

TB Fanatic
2dollarbill said:
jward, in a normal world, ie... 1968, the norms of economics were easily identified and followed by almost everyone worldwide. Today, the economic world is so corrupt that up is down and black is white. Knowing this, if you will,
other currencies trading and overcoming the greenback are just an illusion. Be careful when making financial moves based on what the rest of the world is doing and what is our best options going forward. I don't think there are any at this time. Just my 2 cents.

2db
Click to expand...
I agree, but you should also consider these moves to be similar to bank failures. People are moving their money to what they perceive are safer places..... not saying they are, but it is perceived that way.

What does that say for the US Dollar????
 
nomifyle

nomifyle

TB Fanatic
Kathy in FL said:
There is a way through this even if we convert to digital currency ... something most of the world operates on anyway these days with transfers, credit cards, debit cards, direct deposits, etc. However it won't be the way that Biden et al and the woke 'tards are doing it.

First and foremost we become energy independent ... and I'm not talking about a bunch of windmills and solar panels. By no longer needing to buy energy from other countries we'll cut several countries off at the knees. With cheaper fuel will come greater manufacturing capacity. That gets a little complicated as we'll have to import a lot of the resources to get this done, but it is possible.

The last is going to ouch the most but needs to happen. We cut the entitlement rolls. We cut them drastically. At the same time, for those that remain on the rolls, the ability to purchase non-necessities or non-essentials needs to collapse. A digital currency of some type will actually go far in making this happen due to the tracking nature. You can separate money from entitlements and any job they may have. We'll have to build in safety measures so the system isn't abused but that needs to be done now anyway.

I suspect, though I don't know how they plan on implementing it, that they want to include a universal basic income. This may replace entitlements. If this happens it needs to be tied to some type of work for pay, even if it is volunteer hours or community service hours. Abuse of the disability system also need to be ferreted out. Job training should be a requirement.

And don't even get me started on restructuring the income tax system in this country. Maybe we need to move to a VAT tax like most of the rest of the world.

I haven't even mentioned immigration reform but that's in there as well. And may come whether we expect it or not as the value of the US$ goes down.
Click to expand...
You didn't mention SS. I worked and paid into the system for over 40 years and unfortunately I depend on SS to live on. I don't consider it an entitlement but others do.
 
TxGal

TxGal

Day by day
I would add the ability to grow food to the strength of the US, we've long grown a good chunk of the world's grain. I'd guess that's why China has been buying/attempting to buy so much farmland - not just for their own production of food, but as another method to weaken the US. It's paramount that the US stop selling farmland to foreign entities/countries.

Either way, the US is not only looking weaker than it ever has been, it is becoming so in reality.
 
vector7

vector7

Dot Collector
Within the past few hours, multiple OPEC nations have announced oil production cuts, total is over 1 million bpd.

Russia has also announced 500,000 bpd cut. Biden has already sold about half of our emergency oil supply reserve. He can’t counter this situation.

"There are decades where nothing happens; and there are weeks where decades happen" - Stalin Lenin

Some of the things that have happened the last week:

- Trump indictment
- China and Brazil to trade in Yuan
- China and France first ever Yuan deal
- Finland to join NATO
- Alibaba to split into 6 companies
- Jack Ma returns to China
- India adds it's 19th country which it can trade in rupees with
https://twitter.com/i/web/status/1642538247610941440
View: https://twitter.com/IndBizGuru/status/1642538247610941440?t=aUTPYCsI_0igGv6p7rVPzA&s=19
 
Kathy in FL

Kathy in FL

Administrator
_______________
TxGal said:
I would add the ability to grow food to the strength of the US, we've long grown a good chunk of the world's grain. I'd guess that's why China has been buying/attempting to buy so much farmland - not just for their own production of food, but as another method to weaken the US. It's paramount that the US stop selling farmland to foreign entities/countries.

Either way, the US is not only looking weaker than it ever has been, it is becoming so in reality.
Click to expand...

Which is one reason we need to tax the heck out of exports that are owned by non-US entities. Cut their ability to play their games and make the US some money so we can institute the necessary changes in this country ... such as take care of our own vets rather than pay other countries to play war games.
 
subnet

subnet

Boot
Kathy in FL said:
There is a way through this even if we convert to digital currency ... something most of the world operates on anyway these days with transfers, credit cards, debit cards, direct deposits, etc. However it won't be the way that Biden et al and the woke 'tards are doing it.

First and foremost we become energy independent ... and I'm not talking about a bunch of windmills and solar panels. By no longer needing to buy energy from other countries we'll cut several countries off at the knees. With cheaper fuel will come greater manufacturing capacity. That gets a little complicated as we'll have to import a lot of the resources to get this done, but it is possible.

The last is going to ouch the most but needs to happen. We cut the entitlement rolls. We cut them drastically. At the same time, for those that remain on the rolls, the ability to purchase non-necessities or non-essentials needs to collapse. A digital currency of some type will actually go far in making this happen due to the tracking nature. You can separate money from entitlements and any job they may have. We'll have to build in safety measures so the system isn't abused but that needs to be done now anyway.

I suspect, though I don't know how they plan on implementing it, that they want to include a universal basic income. This may replace entitlements. If this happens it needs to be tied to some type of work for pay, even if it is volunteer hours or community service hours. Abuse of the disability system also need to be ferreted out. Job training should be a requirement.

And don't even get me started on restructuring the income tax system in this country. Maybe we need to move to a VAT tax like most of the rest of the world.

I haven't even mentioned immigration reform but that's in there as well. And may come whether we expect it or not as the value of the US$ goes down.
Click to expand...
More manufacturing would be a stretch as the greenie cult would knee cap any real attempts through rules/regs and courts
 
L

Lone Eagle Woman

Veteran Member
Now the elites want their digital currency with a social credit score in place to keep the people in their place bad. Along with this, there is that Tik Tok bill also.Then comes the chip to buy or sell just like in Revelations whereby everyone will be controlled by AI. Forgot how many received the Covid Vax that already has the Nanodot things in it. Gosh, some days we are currently living in.
 
TxGal

TxGal

Day by day
And OPEC has announced a cut in oil production starting in May until 2024. Other countries have their oil deals, China, Russia, etc. We're likely going to see gas price increases soon. Sure looks like they're working together to choke us off.
 
Tristan

Tristan

Has No Life - Lives on TB

De-Dollarization: More Countries Seek Alternatives to the U.S. Dollar​


elements.visualcapitalist.com

De-Dollarization: More Countries Seek Alternatives to the U.S. Dollar

The U.S. dollar is the dominant currency in the global financial system, but some countries are following the trend of de-dollarization.
elements.visualcapitalist.com elements.visualcapitalist.com


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Published
7 days ago
on
March 26, 2023

By
Bruno Venditti

Graphics by Sabrina Lam​

de-dollarization






De-Dollarization: More Countries Seek Alternatives to the U.S. Dollar​

The U.S. dollar has dominated global trade and capital flows over many decades.
However, many nations are looking for alternatives to the greenback to reduce their dependence on the United States.
This graphic catalogs the rise of the U.S. dollar as the dominant international reserve currency, and the recent efforts by various nations to de-dollarize and reduce their dependence on the U.S. financial system.

The Dollar Dominance​

The United States became, almost overnight, the leading financial power after World War I. The country entered the war only in 1917 and emerged far stronger than its European counterparts.
As a result, the dollar began to displace the pound sterling as the international reserve currency and the U.S. also became a significant recipient of wartime gold inflows.
The dollar then gained a greater role in 1944, when 44 countries signed the Bretton Woods Agreement, creating a collective international currency exchange regime pegged to the U.S. dollar which was, in turn, pegged to the price of gold.
By the late 1960s, European and Japanese exports became more competitive with U.S. exports. There was a large supply of dollars around the world, making it difficult to back dollars with gold. President Nixon ceased the direct convertibility of U.S. dollars to gold in 1971. This ended both the gold standard and the limit on the amount of currency that could be printed.
Although it has remained the international reserve currency, the U.S. dollar has increasingly lost its purchasing power since then.

Russia and China’s Steps Towards De-Dollarization​

Concerned about America’s dominance over the global financial system and the country’s ability to ‘weaponize’ it, other nations have been testing alternatives to reduce the dollar’s hegemony.
As the United States and other Western nations imposed economic sanctions against Russia in response to its invasion of Ukraine, Moscow and the Chinese government have been teaming up to reduce reliance on the dollar and to establish cooperation between their financial systems.
Since the invasion in 2022, the ruble-yuan trade has increased eighty-fold. Russia and Iran are also working together to launch a cryptocurrency backed by gold, according to Russian news agency Vedmosti.
In addition, central banks (especially Russia’s and China’s) have bought gold at the fastest pace since 1967 as countries move to diversify their reserves away from the dollar.

How Other Countries are Reducing Dollar Dependence​

De-dollarization it’s a theme in other parts of the world:
  • In recent months, Brazil and Argentina have discussed the creation of a common currency for the two largest economies in South America.
  • In a conference in Singapore in January, multiple former Southeast Asian officials spoke about de-dollarization efforts underway.
  • The UAE and India are in talks to use rupees to trade non-oil commodities in a shift away from the dollar, according to Reuters.
  • For the first time in 48 years, Saudi Arabia said that the oil-rich nation is open to trading in currencies besides the U.S. dollar.
Despite these movements, few expect to see the end of the dollar’s global sovereign status anytime soon. Currently, central banks still hold about 60% of their foreign exchange reserves in dollars.
 
Tristan

Tristan

Has No Life - Lives on TB

Why is the US dollar’s reserve currency status no longer privileged?​


Why is the US dollar’s reserve currency status no longer privileged?

The dollar is losing its supremacy in the global monetary system as many countries are now looking to strengthen their own currencies.
www.trtworld.com www.trtworld.com

The dollar is losing its supremacy in the global monetary system as many countries are now looking to strengthen their own currencies.​


Since the end of World War II, the US dollar has served as the primary reserve currency globally, leaving little room for other currencies to grow as an alternative monetary system.

Currently, central banks hold about 60 percent of their foreign exchange reserves in American dollars. And about half of international trade, loans and global debt securities are invoiced in US dollars. In foreign exchange markets, where currencies are traded, the dollar is involved in nearly 90 percent of all transactions.

In 2014, however, the currency began to lose reserve status as Russia and China joined hands to de-dollarise its business dealings. The move was made in response to the imposition of Western sanctions following Moscow's annexation of Crimea, which restricted the ability of state-owned businesses and banks to raise capital in Western markets.

Countries to ditch the dollar

In the last two decades, the US dollar has lost over 12 percentage points of market share, from 71 percent to 59 percent in 2022.

Moscow has rapidly intensified its usage of the yuan via two main channels: raising the yuan's percentage in Russia's reserves and switching to direct ruble-yuan commerce rather than utilising the dollar as an intermediary

The Russian Finance Ministry raised the authorised percentage of yuan reserves in the National Wealth Fund to 60 percent at the end of the previous year.

The Brazilian government also announced on Wednesday that China and Brazil have agreed to trade directly in their own national currencies, forgoing the use of the US dollar as an intermediary.

The agreement will enable China, the top rival to US economic hegemony, and Brazil, the largest economy in Latin America, to conduct their extensive trade and financial transactions directly, exchanging yuan for reais, which is the Brazilian real, and vice versa instead of going through the US dollar.

China and India, two of the largest economies in Asia, have launched separate programs in an effort to lessen the US dollar's dominance over international trade and enable them to settle transactions in their own currencies.

The Reserve Bank of India (RBI) last week permitted central banks from 18 countries, including Tanzania, Kenya, and Uganda, to open special Vostro Rupee Accounts (SVRAs), which will allow them to settle payments in Indian rupees as part of a significant effort to de-dollarize trade.

Russia has also advocated for the de-dollarization of trade and the use of the Indian rupee. In response to the sanctions the West had placed on Russia for invading Ukraine, the Kremlin likewise began requesting payments be made in the ruble.


READ MORE: The IMF warns of the US dollar losing dominance after sanctions

Source: TRTWorld and agencies
 
Last edited:
BUBBAHOTEPT

BUBBAHOTEPT

Veteran Member
2dollarbill said:
jward, in a normal world, ie... 1968, the norms of economics were easily identified and followed by almost everyone worldwide. Today, the economic world is so corrupt that up is down and black is white. Knowing this, if you will,
other currencies trading and overcoming the greenback are just an illusion. Be careful when making financial moves based on what the rest of the world is doing and what is our best options going forward. I don't think there are any at this time. Just my 2 cents.

2db
Click to expand...
In years past I would have discounted your assessment, but with what we have witnessed in the last decade, your 2 cents is spot on…. :kaid:
However, the one thing that has not changed in my mind is that this will end badly…
 
hiwall

hiwall

Has No Life - Lives on TB
The USA has seriously weakened itself. Like others here have said, it could turn that around and become strong again.
But for the Major change and turn to happen it would take something extreme to force that change.
 
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