Final nail to the Petrodollar coffin?

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Final nail to the Petrodollar coffin?

Post by GiHimp » Thu May 15, 2014 1:30

In case Russia starts asking for payment in currencies other than the U.S. dollar, that will de facto end the monopoly of the petrodollar. No more free lunch for the elites.

Virtually all oil and natural gas, the most important energy resources around the world, has been bought and sold for U.S. dollars, aka Federal Reserve Notes, and Russia and China are about to change that.

Voice of Russia reports that the country’s Ministry of Finance is ready to greenlight a plan to radically increase the role of the Russian ruble in export operations while reducing the share of dollar-denominated transactions. Governmental sources believe that the Russian banking sector is “ready to handle the increased number of ruble-denominated transactions”.

Of course, the success of Moscow’s campaign to switch its trading to rubles or other regional currencies will depend on the willingness of its trading partners to get rid of the dollar. Sources cited by mentioned two countries who would be willing to support Russia: Iran and China. Given that Vladimir Putin will visit Beijing on May 20, it can be speculated that the gas and oil contracts that are going to be signed between Russia and China will be denominated in rubles and yuan, not dollars.

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