On the Western portal The Duran was an interesting article Adam Garry, devoted to analysis of recent economic events, which, in the author’s opinion, may affect the primacy of the us currency. The plans of Russia and China is able to lick the dominant position of the dollar and calling into question even the value of it.
We will focus on new methods of exchange of gold, which promoted the Russian and Chinese sides. According to Garry, this policy will be a challenge for the already familiar hegemony of the West on one of the most important markets. As you know, the BRICS countries began to discuss system gold trade, which promotes independence from European and Western. Given that Russia, China and India lead in buying gold, this is a serious claim. Trading mechanisms easy to obey the largest buyers in the market.
Between the Bank of Russia and China already have an agreement on a bilateral system of trading gold, which will be implemented next year. Thus, the West was given a clear signal that Moscow and Beijing are ready to act.
According to Garry, the new system will hit Western control of the currency, and the status of the dollar could “stagger”. Now the us currency is the global reserve, and advocates for international exchange, but not sure the economic policy of the BRICS, it is able to change it.
Russia and China signed an agreement to expand trade in national currencies, including a gradual move away from using the us currency for transactions. But Moscow and Beijing are not the only one who decided to break the financial hegemony of the United States. Turkey, Venezuela and Iran are also moving to the national currency for transactions. And, most unfortunate for the Americans, is perfectly legal.
Garry drew attention to the fact that such economic “audacity” remains unanswered. The US is trying to provoke China, filling their ships in the South China sea. And Beijing in response even had to send a couple of fighters and a frigate, having made thus a clear warning. However, the United States can not accept the possibility of losing financial dominance, so the provocation continues.
Concerned Americans and warmer relations between Saudi Arabia and Russia. The Saudis have shown that they are willing to support the development of the “Eastern” economy. In this case, writes Garry, Riyadh may decide to trade energy to bypass the dollar. As it has done in Venezuela, also an OPEC member.
USA are struggling for the prosperity of the financial industry, but will hardly be able to resist. The value of the dollar on world markets may soon come under question, and this will also affect its impact. Americans will have to come to terms with the new realities in which they are no longer the holders of all of the “economic thread”. It is likely that new provision of the foreign exchange market is directly reflected in the value of the dollar.