Wednesday, November 24, 2010

China, Russia quit dollar for bilateral trade

Has everything to do with geopolitical megalomaniac ambitions by both sides as expressed by the following quote:
"China will firmly follow the path of peaceful development and support the renaissance of Russia as a great power," he said.
That's China's Premier Wen Jiabao.

If you go into the article you'd notice that it's also about the complicated negotiation of price of natural gas and other natural resources. My guess - while they'd both like to eliminate the Dollar - they will continue to evaluate the prices of natural resources by it - and adjust their trade agreement as such. I'm not an expert, simply an opinion.

China Daily: China, Russia quit dollar

One more quote, for the heck of it:
Sun Zhuangzhi, a senior researcher in Central Asian studies at the Chinese Academy of Social Sciences, said the new mode of trade settlement between China and Russia follows a global trend after the financial crisis exposed the faults of a dollar-dominated world financial system.

Pang Zhongying, who specializes in international politics at Renmin University of China, said the proposal is not challenging the dollar, but aimed at avoiding the risks the dollar represents.

Cheers!

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