Russian Companies ‘De-Dollarize’ & Switch to Yuan, Other Asian Currencies

Russia's Universal electronic card based on PRO100 payment system, RIA Novosti/Maksim BogovidRussia will start settling more contracts in Asian currencies, especially the yuan, in order to lessen its dependence on the dollar market, and because of Western-led sanctions that could freeze funds at any moment.

Over the last few weeks there has been a significant interest in the market from large Russian corporations to start using various products in renminbi and other Asian currencies, and to set up accounts in Asian locations, Pavel Teplukhin, head of Deutsche Bank in Russia, told the Financial Times, which was published in an article on Sunday.


Originally Posted at RT.com:

Diversifying trade accounts from dollars to the Chinese yuan and other Asian currencies such as the Hong Kong dollar and Singapore dollar has been a part of Russia’s pivot towards Asian as tension with Europe and the US remain strained over Russia’s action in Ukraine.

Since Crimea voted to rejoin Russia, the US government has imposed cold-war era sanctions, which have hurt the Russian economy and have slowed lending and investment activity.

VTB, Russia’s second largest bank, intends to increase the amount of non-dollar settlements, according to the bank’s president Andrey Kostin.

In May, Russia’s biggest gas producer, Gazprom, announced it wants to start trading shares in Singapore, obtaining a listing as early as July, the company said. Just before that Russia’s state-owned gas giant inked a $400 billion gas deal with China.

“Given the amount of bilateral trade volume with China, of course, we are working on the expansion of settlement in rubles and yuan,” Kostin said at a meeting with Russian President Vladimir Putin, adding this is a goal the bank has been moving towards since May.

 

Russia's Universal electronic card based on PRO100 payment system, RIA Novosti/Maksim Bogovid
Russia’s Universal electronic card based on PRO100 payment system, RIA Novosti/Maksim Bogovid

 

A new payment plan

Russia’s main tasks are expanding currency operations and creating Russia’s own forthcoming national payment system.

The Central Bank of Russia is working on creating a national payment system, which both China and Japan have already established, and is expected to be up and running within four months.

Alexander Dyukov, the CEO of Gazprom Neft, the oil division of Gazprom, has been very vocal aboutditching the dollar over escalating pressure from the West.

“This shows that in principle there is nothing impossible – you can switch from dollar to euro and from euro, in principle, to rubles,” Vedomosti quotes Mr. Dyukov.

He has also said the company has discussed with customers the possibility of shifting contracts out of dollars, while Norilsk Nickel told the FT that it was discussing denominating long-term contracts with Chinese consumers in renminbi.

As of now, Russia is not preparing any countermeasures against the West, Putin’s chief advisor to the EU, Andrey Belousov has said.

“As long as Russia is not subject to systemic sanctions, which could bring an artificial limit to our economy’s access to dollars . . . then I don’t think Russia will take any steps in order to bring about artificial de-dollarization,” the FT quoted Belousov as saying.

Another swift move Russia has made towards Asia is the establishment of a joint rating agency with China, to replace more “biased” agencies like Fitch, Moody’s, and Standard & Poor’s.


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Comments

  1. Things move slowly and then they start moving very fast.

  2. That’s all she wrote folks!!!!  The fat lady is signing…
     
    Which will be worth more in a year… A confederate dollar or a US dollar? 

    • Actually a genuine Confederate dollar is worth more today in terms of fiat … at least to collectors.

      But seriously, both are just paper. Move along, nothing to see here.

  3. TIC TOC TIC TOC

  4. So what does this mean for other currencies?  Where is this paradigm shift @inlikeflynn where change is inevitable?  Has anyone thought we “United States Citizens” are insurance assets for the federal reserve?  Lorenzo Tontine from France in 1647. In the assets pools, life-death economics?  The illuminati is having a fire sale as USPost writes.  So Silver & Gold needs to lose its sparkle in the equation to meet unsecured liabilities to drive up insurance  assets?  Not people…

  5. About the same time that the ‘Federal Reserve’ system was established, the IRS was set up.  It is not hard to conclude that the intent was to use the labor and manpower of the citizens of the US to pay off the debt ‘owed’ to the Federal Reserve.  Unfortunately for the world, by 1971 the citizens of the US alone were nowhere close to being able to finance the ‘debt’ owed to the Federal Reserve, so instead world citizens would become the next victims.  Today, the vast majority of the world offers their labor in exchange for a currency (corrupt money) that the Federal Reserve and related central banks worldwide create out of thin air.  The people have become willingly enslaved…

  6. Can any of you explain something for me?   I’ve been thinking that the US banking system is Jewish-controlled.  Some call it the Kabal, others say it’s Zionist.  All the same to me, as I’m a Gentile.  Anyway, I’ve been told that the banking system in Russia has always been controlled by the same Jewish-Kabal-Zionist-Rothschild-Bilderberg crowd.
     
    So, if Russia’s being pinched by Obama (his George Soros puppet masters actually), aren’t we really just watching American Jews hammer Soviet Jews, and chasing their banking business off to the Chinese?  Why would they drive the Russians into the non-Jewish Chinese banking system?

  7. The current Ruble-$USD exchange rate is just over 34 Rubles to the Dollar, but when their currency crashed in the 1990′s it went much higher.
    The note below would’ve purchased an ordinary wristwatch back then.
    But once the $USD starts to go – as @AGXIIK said above – things move slowly and then they start moving very fast.  Per the theory of relativity, for every action there is an equal and opposite reaction.  America’s sanctions are helping to drive Russia (and therefore, other countries) out of the $USD.
     
    Can $10,000 wristwatches be in America’s future?

    • Nicely said, but how about Silver?

    • @mrflatbroke2012 , not sure if this is what you had in mind, but here you go anyway…

    • “Per the theory of relativity, for every action there is an equal and opposite reaction.”
       
      Nope, sorry, Woolly.  These are two completely different arguments.  Isaac Newton was one of the BIG brains in classical physics.  His idea of the “equal and opposite reaction” occurred back in the 1680s.  Einstein was much later in the early 1900s, which was where quantum physics and the theory of relativity were born.

    • @Ed_B , anybody who disagrees with me is a troll.
      My point is that the result of the the US attempting to muscle Russia around is going to backfire and end up harming the US.
       
      On a side-note, didn’t the brilliant Isaac Newton lose a fortune by investing in the South Seas Company, which blew up into a bubble and then deflated?  Were Newton alive today, would he be a proponent of stacking Phyzz or investing in ETF’s and following the charts?

  8. @Mammoth
     
    “anybody who disagrees with me is a troll.”
     
    Interesting… and convenient!  lol
     
    “My point is that the result of the the US attempting to muscle Russia around is going to backfire and end up harming the US.”
     
    Now, THAT, I can agree with 100%!  :-)
     
    “On a side-note, didn’t the brilliant Isaac Newton lose a fortune by investing in the South Seas Company, which blew up into a bubble and then deflated?”
     
    Yes, he did.  It became a bubble, grew hugely, and then went POP!  That soured Newton on investing.  As far as I know, he never invested again after that.  But, just because someone is a genius in science does not make them a genius in economics or investing and vice versa.  People do get caught up in manias… as can be seen on eBay from time to time.  Even a genius is not necessarily immune to greed.  I have always wondered how much attention Newton gave to his investments.  It’s possible that he got into it and then got distracted by what were to him more pressing scientific issues.
     
    But Newton was one of the great minds in science.  I particularly liked the fact that when the mathematics of the day could not solve some issues that concerned him, he invented a totally new kind of math…called calculus… which itself was a HUGE achievement.  Of course, his notation was terrible, so everyone used the Leibniz notation, which is simpler and easier to understand.  Leibniz also invented calculus, independently, and at about the same time, so while they never consulted with one another, they are considered as co-inventors of this extremely useful and powerful branch of mathematics.
     

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