Russia and China Abandon the US Dollar in Bilateral Trade
In a major shift in global economic relations, Russia and China have largely moved away from using the US dollar in their bilateral trade, choosing instead to settle transactions in their national currencies.
This strategic decision highlights the deepening partnership between the two nations and signals a significant change in the global economic order.
De-Dollarization in Action
Russian Foreign Minister Sergey Lavrov recently announced that over 90% of transactions between Russia and China are now conducted using the Russian ruble (RUB) and the Chinese yuan (CNY). This substantial progress underscores the success of both countries in reducing their reliance on the US dollar.
Lavrov emphasized the strong growth in Russian-Chinese trade and economic collaboration, despite external pressures. He stated:
"Russian-Chinese trade and economic cooperation are thriving, despite ongoing efforts by Western countries to obstruct our progress. We have achieved near-complete de-dollarization of our bilateral economic relations, with over 90% of mutual payments now made in our national currencies."
Key Implications
Diminished US Influence: By moving away from the dollar, Russia and China reduce the United States' influence in global trade and finance.
Enhanced Economic Sovereignty: This shift grants both nations greater control over their economic transactions, minimizing their dependence on the dollar.
Promotion of National Currencies: The increased use of the ruble and yuan could challenge the dollar's long-standing dominance in global markets.
Strengthened Bilateral Relations: De-dollarization fosters deeper economic ties and mutual trust between Russia and China.
Potential global Impact: This development may encourage other countries to consider alternative currencies, potentially reshaping global trade dynamic
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