China and Russia Dump The Dollar

What happens to the dollar when China and Russia use their respective currencies for bilateral trade?

China and Russia have announced that they will use their respective currencies to settle bilateral trade accounts between them. Previously, China and Russia settled their accounts using other currencies, specifically the dollar.

Those in the know, state that the decision of China and Russia to use their own currency to settle their trade accounts with one another is largely based on their closer relations and a step towards protecting their domestic economies.

The Chinese yuan trades against the Russian rouble in the interbank market. China and Russia is sure to solidify additional trade agreements beyond that of their currencies and together, they are a powerhouse with a sufficient economy to support their endeavors.

Investments abound in the areas of energy, telecommunications and banking. For those who have the risk tolerance and the willingness to learn more, will profit greatly from their China-Russia interests.

The dollar’s slide against other currencies has cause much debate within many countries to reconsider the dollar. If, enough countries chose to segregate themselves from the dollar, the consequences are unforeseen for them and uncertain for the dollar, but one thing is for sure, speculation breeds a lot of activity in the financial markets. Profit from your understanding!