Bye Bye Benjamin! Russia & China speed up de-dollarization process: most trade no longer conducted in greenbacks

29 Jul, 2020 19:06 / Updated 2 days agoGet short URL

FILE PHOTO. Russian President Vladimir Putin and Chinese President Xi Jinping prepare for family photo session at the G20 leaders summit in Osaka, Japan, June 28, 2019. ©  REUTERS/Kim Kyung-Hoon/Pool

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By Jonny TickleAfter years of talking about abandoning the US dollar, Russia and China are doing it for real. In the first quarter of 2020, the share of the dollar in trade between the countries fell below 50 percent for the first time.

To give an indication of the scale of the adjustment, just four years ago the greenback accounted for over 90 percent of their currency settlements.

According to Moscow daily Izvestia, the share has dropped to 46 percent, tumbling from 75 percent in 2018. The 54 percent of non-dollar trade is made up of Chinese yuan (17 percent), the euro (30 percent), and the Russian ruble (7 percent).

The dollar’s reduced role in international trade can mainly be blamed on the ongoing trade war between the US and China. Relations between the two countries have deteriorated even further in 2020, after US politicians accused Beijing of hiding the severity of Covid-19 and President Donald Trump called disease the “China Virus” and “Kung Flu.”ALSO ON RT.COMKremlin rubbishes American suggestion that Moscow & Washington form anti-China alliance

In January, Russian Foreign Minister Sergey Lavrov explained that Moscow is continuing “its policy aimed at gradual de-dollarization” and is looking to make deals in local currencies, where possible. 

Lavrov called the rejection of the greenback “an objective response to the unpredictability of US economic policy and the outright abuse by Washington of the dollar’s status as a world reserve currency.”

Movement away from the dollar can also be seen in Russia’s trade with other parts of the world, such as the European Union. Since 2016, trade between Moscow and the bloc has been mainly in Euros, with its current share sitting at 46 percent.ALSO ON RT.COMDumping the dollar: Record gold price justifies Moscow’s choice to abandon greenback & bet on precious metal

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My Comment: I expect the Neanderthals in D.C. to push for WW3 b/c they answer to the ZIONISTS and none care if the American people are bombed into the ozone. These traitors have bomb shelters for themselves only; Screw the American people is their attitude. If we do get into WW3 with Russia and China we will certainly lose for with Russia we are outgunned and China we are outmanned. Amerika can not possibly win any war with anyone at this point. We also have made many enemies destroying country after country with illegal sanctions and causing the painful death by starvation of millions of innocents. Our legacy is at least 70 million homeless and 30 million dead as well as mass murdering approximately 98 million Native Americans. It makes me sick to see these hypocrites act like they have the moral highground when they live off the death and suffering of countless children.