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Why Store Food? China, Russia renounce US Dollar for bilateral trade

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Uncertainty in the great US Dollar is another reason to store food currency…for diversification purposes.  That’s one major reason why I am storing food.  Not because I think the dollar is doomed, but because it is currently in a pattern of decline.  We hope for recovery for the dollar, but we prudently diversify.

St. Petersburg, Russia – 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.

“About trade settlement, we have decided to use our own currencies,” Putin said at a joint news conference with Wen in St. Petersburg.

The two countries were accustomed to using other currencies, especially the dollar, for bilateral trade. Since the financial crisis, however, high-ranking officials on both sides began to explore other possibilities.

The yuan has now started trading against the Russian rouble in the Chinese interbank market, while the renminbi will soon be allowed to trade against the rouble in Russia, Putin said.

“That has forged an important step in bilateral trade and it is a result of the consolidated financial systems of world countries,” he said.
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Written by seizevictorynow

November 29th, 2010 at 6:30 pm