Russia Ratifies Economic Union And Readies Trade In Currencies Other Than Dollar
By Kenneth Schortgen Jr Finance Examiner
On Oct. 3, Russian President Vladimir Putin announced that he has signed a treaty ratifying the Eurasian Economic Union, and is set to begin a new era of trade done primarily outside the dollar, and in national currencies such as the Yuan and Euro.
This Union already has the support of several BRICS nations, as well as associate countries, and will help facilitate trade being done in a much smoother and easier way than what is currently used through SWIFT or other Western banking processes.
Courtesy of the diplomat.com The New Silk Road
Putin's signing of the trade agreement comes as a response to the weakening value of the Rouble, and the dumping of excess oil onto the markets via U.S. intervention and other national agenda policies.
And as an alternative to propping up the Rouble through a form of monetization, bond buying, or additional sanctions on the U.S. and Europe, Russia is instead choosing the path of leaving the game entirely, and offering the world a competitive alternative to the current dollar based global trade system.
Putin signs law ratifying Eurasian Economic Union.
In order to "curb risks" from ongoing outflows, Putin said on Thursday that Russia wants to shift to national currencies in trade deals with China and other countries, implying a shift away from the U.S. dollar. That appears to be strengthened further this morning as Putin signs law ratifying a Eurasian economic union. - Zerohedge
The Eurasian Economic Zone, or Trade Zone as it is also known, is a joint venture with China, India, and several Central and Far Eastern countries that will tie into the ongoing construction of the new Silk Road.
This trade zone will allow nations to trade without tax or duties, and for the most part, in their own national currencies or with gold, oil, and other major commodities.
Russia and China have already begun non-dollar trade this year through a historic oil and natural gas deal that will bring in over $400 billion in Yuan equivalent to Russia for a 20-30 year contract.
Additionally, Russia's primary oil company has paved the way for future energy sales to be done in either Roubles or Yuan, with both nations formulating a new alternative to SWIFT that will facilitate easier exchanges of one nation's currency for another.
Economic sanctions by the U.S. are proving that they not only have backfired against the dollar and Europe, but have accelerated plans by Eurasia to bring about a new global trade platform that leaves America completely out of any controlling interest.
And with the dollar having strengthened against nearly all currencies in recent days, the potential of the Eurasian Economic Zone to equalize growing inflation and deflation around the world through the bypassing of the dollar, is quickly becoming a brighter alternative to another Great Recession.
Russia ratifies Economic Union and readies trade in currencies other than dollar