Monday, October 29, 2018

Russia to join China in conducting non-dollar trade in Africa

The Eastern economic blocs continue to expand their gambit of de-dollarization as on Oct. 29, Russia joined China in preparing for bi-lateral trade on the African continent.

Seeking to accelerate the use of each nation's own currencies in international trade, the Chairman of the Russia-Zimbabwe Business Council announced that Russian corporations are now pushing for non-dollar alternatives in order to protect themselves from continuing sanctions being imposed upon them and their trade partners by Washington.


Russian corporations are ready to find an alternative to the greenback in mutual settlements with countries of the African continent, according to the chairman of the Russia-Zimbabwe Business Council, Dmitry Mazepin. 
“I think, it is possible to use other currencies in Africa,” Mazepin, who is also a co-owner of Russia’s largest fertilizer manufacturers, Uralchem and Russian fertilizer group Uralkali, told journalists. 
“We know that VTB is planning to extend its activity in the region. So, we could switch to settlements in the currencies that are more convenient to the lender.” 
Earlier this month, the Russian authorities announced plans to take all necessary steps towards de-dollarization of the country’s economy. The key point of the ambitious plan is to make it more profitable for key Russian exporters to use rubles instead of dollars. 
The measure is reportedly aimed at protecting the country’s economy against imminent US sanctions that threaten to ban investing in Russia’s sovereign bonds, as well as to cut the country off from dollar transactions. - Russia Today
Russia has joined China in realizing that the African continent will be a vital region for growth here in the 21st century, and where several African nations such as Nigeria and Zimbabwe have already opened their banking systems to not only accepting the Yuan as as viable trade payment, but also in accumulating the Chinese currency as one of their primary reserves.

While the U.S. engages in a policy of sanctions, tariffs, and economic warfare, the BRICS nations are instead focusing on expanding the internationalization of their own currencies through trade, lending, and infrastructure growth.  And with more than 40% of the world's population now being willing to accept the Yuan and Ruble in their own economies, the East has almost reached enough critical mass to isolate the reserve currency from one half of the world, and in making the dollar nearly irrelevant.

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