Tuesday, January 10, 2012

Iran and Russia join China and Japan in bi-lateral trading which bypasses the dollar

Two more countries have joined in the trend started by China and Japan recently, where they bypass the dollar and instead use their own currencies directly in trading.  Iran and Russia have made a trade agreement on January 7th which moves the stakes ever closer to the end of the US's reign as the reserve currency.

Speaking to FNA, Tehran's Ambassador to Moscow Seyed Reza Sajjadi said that the proposal for replacing US Dollar with Ruble and Rial was raised by Russian President Dmitry Medvedev in a meeting with his Iranian counterpart Mahmoud Ahmadinejad in Astana on the sidelines of the Shanghai Cooperation Organization (SCO) meeting.
"Since then, we have acted on this basis and a part of our interactions is done in Ruble now," Sajjadi stated, adding that many Iranian traders are using Ruble for their trade deals.
"There is a similar interest in the Russian side," the envoy stated, adding that that Moscow is against unilateral sanctions on Iran outside the UN Security Council, specially the recent sanctions against Iran's Central Bank (CBI). – Fars News

The battle over Iran is indeed taking on more than simply a nuclear threat option.  It is pitting economies vs economies, and superpowers vs superpowers in a chess match for supremacy.  As the West overleverages itself on devalued dollars, the resource rich nations are willing to move away from the reserve and petro-dollar currencies, and towards a new paradigm for trade.


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