Tuesday, November 23, 2010

China & Russia Renounce U.S. Dollar in Bilateral Trade Agreements

Yikes, this is not a good sign. The world is slowly weaning itself of its dollar fix. In the past decades, many of the world's major transactions had to pass through the U.S. financial system, because of the world's usage of the dollar. Now that Russia and China are making bilateral deals with their own respective currencies, the dollar's value in the world may soon decrease.

China and Russia have decided to renounce the US dollar and resort to using their own currencies for bilateral trade, Premier Wen Jiabao and his Russian counterpart Vladimir Putin announced late on Tuesday.

Chinese experts said the move reflected closer relations between Beijing and Moscow and is not aimed at challenging the dollar, but to protect their domestic economies.

Source: Asia One

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