There is an old axiom that goes, if you can’t beat em, join em. And for Eastern powers such as China and Russia, they are taking this adage one step further by implementing a policy of, if you don’t want to join em, create duplicate market mechanisms and replace em.
Over the course of 2015 China has done just this with their new economic policies of bringing online a new SWIFT type system (CIPS), joining the board of the London Gold Fix, and even having the IMF adopt them into their SDR basket of currencies. But even as dollar hegemony and the petro-dollar start to decline from years of misuse by Washington, the one foundation that keeps their empirical status functioning is the control over oil.
But that may soon be changing as on Dec. 10, Russia announced they are building a new oil market platform meant to compete directly with BRENT and WTI markets, and which would allow them to sell their own oil in currencies other than the dollar.