Russian companies ‘de-dollarize’ and switch to yuan, other Asian currencies

These are real power shifts that the West does not yet recognize, but they are happening today. And as they do, the dependency on the USD is lessened, reducing the velocity and need of dollars in circulation. 

Simply put, ugly is deflation in face of hyperinflation. The US will lose.



Alternative-News.tk
9 June 2014

Russia will start settling more contracts in Asian currencies, especially the yuan, in order to lessen its dependence on the dollar market, and because of Western-led sanctions that could freeze funds at any moment.

“Over the last few weeks there has been a significant interest in the market from large Russian corporations to start using various products in renminbi and other Asian currencies, and to set up accounts in Asian locations,” Pavel Teplukhin, head of Deutsche Bank in Russia, told the Financial Times, which was published in an article on Sunday.

Diversifying trade accounts from dollars to the Chinese yuan and other Asian currencies such as the Hong Kong dollar and Singapore dollar has been a part of Russia’s pivot towards Asian as tension with Europe and the US remain strained over Russia’s action in Ukraine.

Since Crimea voted to rejoin Russia, the US government has imposed cold-war era sanctions, which have hurt the Russian economy and have slowed lending and investment activity.

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