MIKECRISTO
By Russia only selling oil in CNY, and Russia holding CNY as their main currency reserve. This allows Russia - China to go to the U.S. Treasury and say “you want us to trade your dollar, this is what the new exchange rate will be” What this means is that China/Russia are now pricing the dollar to rubles/CNY in the foreign exchange The U.S. Treasury no longer prices the USD to the ruble/CNY. This could only happen if the petrodollar was not renewed. This is going to have major implications for the euro-bond markets. China/Russia may have effectively neutralized the Dollar. This is the result of China - Russia trading commodities BRICS trading commodities now sets Dollar exchange rates. Remember Niger kicking out France and the U.S. ? Niger commodities are no longer sold in Dollars or francs. They’re probably being sold in rubles. This is all part of the RMB internationalization in emerging market foreign central banks Europe doesn’t produce commodities, so this is going to affect euro/dollar exchange rates affecting the Euro bond market.
No comments:
Post a Comment