Pace of De-Dollarizatoin Quickens
Pace of De-Dollarizatoin Quickens by Rory – The Daily Coin
Russia is in the news again for dumping the Federal Reserve Note, U.S. dollar. We have reported, on two different occasions, how Russia is quickening the pace to get her economic and financial systems unplugged from the SWIFT system and from the use of the world reserve currency. Russia sees the U.S. dollar as a threat to their national security and is now acting accordingly.
On June 25 of this year we produced a video tying three different articles together to show how what is happening with de-dollarization and Russia’s part in this latest effort. Click here now to see the report.
This morning RT is reporting how the pace is quickening is this is, literally, on the doorstep of the meeting between President Trump and President Putin.
Not only is the Russian government moving away from using the Federal Reserve Note it sounds like the people are using fewer and fewer U.S. dollars for any reason.
One of Russia’s largest banks, VTB is seeking to decrease the share of US dollar transactions at home as locals are choosing the Russian ruble over the greenback.
“There is one interesting thing I wanted to highlight. Since the beginning of this year, people seem to be less interested in making dollar deposits or taking out dollar loans, compared to ruble-denominated deposits and loans. We believe this to be an important step towards the de-dollarization of the Russian finance sector,” said VTB head Andrey Kostin at a Kremlin meeting with President Vladimir Putin. Source
Russia, more specifically President Putin, has been very vocal about the Federal Reserve abusing the privilege of having the world reserve currency. This is system is now in question and seems to be falling apart.
As we noted noted back on July 9 the BRICS alliance is not only moving away from the dollar based system they are also ending the purchase of heavy equipment used in construction from Western companies, like Caterpillar, creating less need for dollars in their reserves. If you combine this one move with the fact that oil purchases using the dollar based system are now coming in at a trickle will create an even larger gap in the use of the world reserve currency and directly impact the need for Federal Reserve Notes to be on the books as a reserve currency.
The threat the Federal Reserve Note brings to the table is very real, if you don’t believe me just ask Iran. This move by the U.S. in 2011, under Obama, has done more harm than good. This one move has set in motion 90% of the Eastern alliances to consolidate their economies and move away from a dollar based system.
Russia has been seeking the ways of decreasing the dependence on the US currency after Washington and its allies imposed sanctions against Moscow in 2014. In May, President Putin said Russia can no longer trust the US dollar-dominated financial system since America is imposing unilateral sanctions and violates World Trade Organization (WTO) rules. Putin added that the dollar monopoly is unsafe and dangerous for the global economy. Source