There have been an increasing number of reports that Russia has been pushing hard for its allies, and the world, to move away from the U.S. dollar as the world’s reserve currency and to trade oil without the use of the Petrodollar. Russia has even coined a term for this movement: de-dollarization.
Zerohedge.com has published numerous reports on Russia’s plans for a “de-dollarized” world and they are now focusing their spotlight on a meeting that may be scheduled between Russia, China, and Iran with the objective of turning this plan into a reality.
According to Zerohedge.com, “Voice of Russia” has reported that “the country’s Ministry of Finance is ready to green-light a plan to radically increase the role of the Russian ruble in export operations while reducing the share of dollar-denominated transactions.” According to the statement, the Russian banking sector is “ready to handle the increased number of ruble-denominated transactions.”
Russia’s main news agency has also released the following statement:
“On April 24th the [Russian] government organized a special meeting dedicated to finding a solution for getting rid of the U.S. dollar in Russian export operations. Top level experts from the energy sector, banks and governmental agencies were summoned and a number of measures were proposed as a response for American sanctions against Russia.”
A key to Russia’s success will be putting together a coalition of powerful nations with the same goal of knocking the U.S. dollar off of its pedestal. China and Iran are certainly two countries with both personal and economic reasons for wanting to remove the U.S. dollar as the world’s reserve currency. In fact, Zerohedge.com has reported that they are the first nations to join Russia on its mission.
Iran is no surprise, as Russia has already started putting together an oil-for-goods deal with the oil-rich nation. China has a goal of becoming the most powerful country in the world and anything that moves the yuan closer to being the reserve currency would certainly do just that. On May 20th, Vladimir Putin will be visiting Beijing, and it is speculated that the previously reported landmark dollar-free oil deal between the two world powers will be signed, signaling another huge step toward a de-dollarized world.
Make no mistake, eliminating the Petrodollar and removing the U.S. dollar as the world’s primary reserve currency is a monumental task. This has not stopped Russia from pulling out all the stops and making deal after deal with “enemies” of the United States to try to get this done. Moscow may be finding motivation in the ever-increasing economic sanctions meant by the United States to pressure Putin into backing out of Ukraine. Whatever the driving force may be, the fact is that Russia has its sights set on winning the economic war against the U.S. and it has very powerful friends lending a hand.