OfflineChina and Russia have stopped using the U.S. dollar for bilateral dealings, a transfer announced Wednesday. The announcement came as top officials from China and Russia met in St. Petersburg to forge bilateral cooperation in Trade and energy. The dollar is expected to continue its role in international Trade unaffected, while the yuan, under protection from the Chinese govt, could become more vulnerable to global developments that determine the value of other currencies. Source of article - China-Russia dollar move may signal end to manipulation of yuan by Money Blog Newz.
Dollar to become extinct among bilateral transactions with Russia and China
China, Russia and the dollar formally ended a long relationship Wednesday. The relationship between China and Russia has long been one of discontent. Because of this the two countries have used a third party currency to negotiate trade. The dollar was the third-party currency of choice, and last year Russia-China trade was valued at $ 38.8 billion. These two nations will have an estimated $ 60 billion value by the end of the current year. The two countries have decided to use rubles or yuan when trading with each other from here on out.
Why China and Russia are making the switch
The Chinese stock exchange already recognizes the Russian ruble. As early as December the Chinese yuan is going to be traded in Moscow. International Business Times reports that this change has nothing to do with America. This is merely a precaution taken by the two countries in the wake of the global financial crisis. Some believe this switch is due to a Russia-China oil deal. A new Siberian oil pipeline will soon pump 1 billion barrels of Russian oil into China every year. Russia is requesting the oil be exchanged through rubles.
The international currency issue
Nothing is going to change with the dollar and how it impacts International trade. The whole planet has been anticipating the switch for China and Russia trade for some time now. China has been able to manipulate the yuan for some time, and America is happy that this should stop that from taking place any longer by giving the yuan a specific value on the trade market.
Citations
International Business Times
ibtimes.com/articles/85216/20101124/china-russia-dollar-vladimir-putin-wen-jiabao-ruble-yuan-bilateral-trade.htm
Business Insider
businessinsider.com/china-and-russia-drop-dollar-for-bilateral-trade-2010-11
NASDAQ
community.nasdaq.com/News/2010-11/china-russia-open-up-nondollar-trading.aspx?storyid=46466
I know everything does effect us too, but I went on your profile, and there was no info of who you are or where you live, but what does this post have to do with questions on real estate investing. One thing that we learn is not to think on negatives and focus on positive, and there is a lot of positive investing going on. Your post hasn't changed my looking or investing.
Just wondering what was the point of this? Or what was the question you had.
Sandi
YOU TELL HIM SANDI
JIM
http://kendrickpropertymanagement.com/
http://rochesterapartmentrentals.com/?page_id=10