Venezuela Moves To Oust Dollar From Oil Trade - Could Russia Be Next?

[Stephen + 67]

and China as well

https://seekingalpha.com/article/4131801-venezuela-moves-oust-dollar-oil-trade-russia-next

Edited December 14, 2017 by Stephen

[Meanwhile + 49]

That's because this would allow them to reduce their dependency on the dollar while, at the same time, limiting their exposure to U.S. currency risks and American sanctions

[JohnAtronis + 78]

China could prove to be the "sticking point" for the future of cryptocurrencies in the commodity sphere.

China's central bank stopped operations for digital currency trading platforms in Beijing and Shanghai in mid-September amid concerns the unregulated markets could pose a major financial risk.

[Rodent + 1,424]

They'll all try. Everyone is tired of the dollar dominating the oil trade. But that's easier said than done. I don't think anyone is concerned about Venezuela refusing to trade in dollars (although they are looking to buy US crude right now, so I'm betting that it will be traded in US dollars --wait.... they don't have any money anyway). China and Russia, on the other hand, raise a concern.

[JohnAtronis + 78]

Just now, Rodent said:

They'll all try. Everyone is tired of the dollar dominating the oil trade. But that's easier said than done. I don't think anyone is concerned about Venezuela refusing to trade in dollars (although they are looking to buy US crude right now, so I'm betting that it will be traded in US dollars --wait.... they don't have any money anyway). China and Russia, on the other hand, raise a concern.

Bypassing the US dollar appears to be paying off: according to the Chinese State Administration of Taxation, trade turnover between China and Russia increased by 34% in January, in annual terms. Bilateral trade in January 2017 amounted to $6.55 billion. China’s exports to Russia grew 29.5% reaching $3.41 billion, while imports from Russia increased by 39.3%, to $3.14 billion. Just as many suspected, with Russian sanctions forcing Moscow to find other trading partners, chief among which China, this is precisely what has happened.

[Joanna + 68]

Financial commentator Jim Rogers predicted the change in September, telling RT: “Many people do not like using US dollars because if the US gets angry at you, they just set enormous pressure on you that can even get you out of business.

[JohnAtronis + 78]

The current system is flawed. oil importers are forced to buy dollars to pay for their fuel, while exporters are left with billions of dollars which they often hold in reserve or reinvest in the US economy. The result is that the dollar's position as the global reserve currency is reinforced.

 

[Meanwhile + 49]

Just now, JohnAtronis said:

The current system is flawed. oil importers are forced to buy dollars to pay for their fuel, while exporters are left with billions of dollars which they often hold in reserve or reinvest in the US economy. The result is that the dollar's position as the global reserve currency is reinforced.

 

Thus, the US economy is supported as any devaluation would cause damage across the world. Most of China's $2tn of foreign currency reserves are in dollars, for example.

 

 

[Joanna + 68]

8 minutes ago, Rodent said:

They'll all try. Everyone is tired of the dollar dominating the oil trade. But that's easier said than done. I don't think anyone is concerned about Venezuela refusing to trade in dollars (although they are looking to buy US crude right now, so I'm betting that it will be traded in US dollars --wait.... they don't have any money anyway). China and Russia, on the other hand, raise a concern.

In 2000, Iraq broke away from the dollar's dominance and began selling its oil in euros. And three years later....