Thursday, May 24, 2018

SPIEF 2018: Economic forum dedicates first day of conference to alternative ways nations can ditch the dollar

With Russia already fully prepared to not only move away from the dollar themselves in international trade, but also able to offer the rest of the world an alternative to the global reserve currency system, perhaps it should not be surprising that they have dedicated a full day of their annual economic forum to discussion on ways nations can join them in this crusade.

The first day of the 2018 St. Petersburg International Economic Forum (SPIEF) has seen some fireworks come out right off the bat at the threat of the U.S. imposing even more sanctions on nations such as Iran, France, North Korea, and even Germany has made talks on how businesses and nations can use alternative financial platforms to evade any and all restrictions Washington may impose through their use of the dollar as a financial weapon a high priority.

The first day of the St. Petersburg International Economic Forum (SPIEF) has seen various discussions on ways of ditching the US currency which dominates global trade.
Veteran investor Jim Rogers has noted that the US currency will likely lose its leadership status in the next decade. 
“Dollar is going to be higher than now because the turmoil is coming. Then, it is going to be overpriced and people will look around and say, ‘America’s got the largest debt in the history of the world. It’s printing money as fast as it can,’” the investor said at the Valdai Club’s discussion session, held as part of SPIEF. 
The alternative is coming from Brazil, Russia, China, India, Iran and other developing countries, according to Rogers, who said these states have enough power to compete with the dollar. 
Russian Finance Minister Anton Siluanov suggested the euro could substitute the dollar in Russia’s foreign trade if Brussels takes a stand against Washington’s latest sanctions against Moscow. “As we see, restrictions imposed by the American partners are of an extraterritorial nature. The possibility of switching from the US dollar to the euro in settlements depends on Europe’s stance toward Washington’s position,” said Siluanov, who is also Russia’s first deputy prime minister. The minister added that the Chinese yuan, Indian rupee, and Russian ruble can also play a greater role in trade. 
The need for more ruble-yuan settlements comes as trade between Russia and China grows. Xu Sitao, chief economist with Deloitte China, told RT that China has become the largest export market for Russia since 2017, accounting for roughly 12-13 percent of Russian exports. - Russia Today


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