Moving away from the dollar

This is a rough 'Google' translation – but you should get the drift!

Russia is pursuing a campaign to

de-dollarization: China and Iran are willing to abandon the dollar in bilateral settlements

Россия проводит кампанию по дедолларизации: Китай и Иран готовы отказаться от доллара в двусторонних расчётах

It is no secret that Russia tried to minimize the involvement of the dollar (and its influence) in its trade agreements, especially with the start of the Ukrainian crisis.

Mixed News (Russia),

15 May , 2014

Gathering gas deal with China , the upcoming bond issue of "Gazprom" in RMB, the possible transition on the yuan as a reserve currency ... Until recently, the news seemed to be something rather from the rumors and fantasies. In fact, it's "ridiculous" that any country can seriously contemplate about how to live out the ideological and "religious" petrodollar dungeons. Because if one state succeed, others may follow suit filed.

But then the United States will be faced with hyperinflation, social disaster, civil war and other troubles that are in the Socialist Republic of Venezuela type. After all, these countries do not have the world's reserve currency, to dictate their will to all. 

They have no Keynesian economists and like servants "petrodollar cult" that require the entire world of faith in him.

Yet Moscow, like the rest of it or not, actively promoting plans to establish a system free from the dollar. Or as they say in Russia, "de-dollarization" of the world. If the West wanted to get a response to Russia to strengthen its sanctions, it almost came.

According to Russian media, the Ministry of Finance is ready to give the green light for a radical program of increasing the role of the ruble in export operations, reducing the share of dollar transactions. Government sources believe that the banking sector is able to handle the increased number of settlements in rubles.

In late April, the Russian government had come to a special meeting on the development of solutions to get rid of the dollar in export operations. Were invited top experts from government agencies, energy and banking sectors.

The meeting was "de-dollarization" headed by First Deputy Prime Minister Igor Shuvalov, that confirms the seriousness of Moscow to abandon the dollar. As reported later, Deputy Finance Minister Alexei Moiseev, " the number of contracts in rubles will increase ", adding that none of the invited experts and bank officials found no significant obstacles the government's plan to increase the share settlement in rubles.

Moreover, mistaken who thinks that only Obama can give instructions. In Russia it is also good at it. Moses mentioned legislative mechanism to oblige Russian companies make calculations on a certain percentage of transactions in rubles. Situation where the share reaches 100 percent, Moses called the "last option." 

And yet such a possibility.

It is important to note that Russia's plans might not materialize if the country was not cheering the rejection of the dollar in bilateral settlements. But these countries are found. And it is not surprising that the most actively supported Russia, China and Iran. We can assume that the currency of oil and gas contracts that intend to sign China and Russia will be the ruble and the yuan. Not dollar. Recall Vladimir Putin will visit Beijing on May 20 .

The stronger the West against Russia restores itself more than impose sanctions, the more Russia will move away from the dollar system and significantly strengthen ties with India and China. So that the events of next week, however great they may be, is only the beginning.