the us dollar is doomed.. , page-5

These guys don't seem to give a rats....they will be the ones to determine who's worthy and who's not.Perhaps getting into the G7 isn't such a fancy deal these days?
Gotta luv Vlad's work.He and Hu -the new fiscal tag team.
Both respect Gold.
(Appologies if article is already on HC)
Profits to all.BMD.

Related News:Emerging Markets China Eastern Europe Asia Yuan Trading Against Russian Ruble Said to Start Within Weeks in Shanghai
By Artyom Danielyan and Emma OBrien - Sep 8, 2010 9:54 PM GMT+1000 Email Share
Business Exchange Twitter Delicious Digg Facebook LinkedIn Newsvine Propeller Yahoo! Buzz Print China and Russia plan to start trading in each others currencies as the worlds second-biggest energy consumer and the largest energy supplier seek to diminish the dollars role in global trade.

China may start trading its currency against the ruble within weeks, three bankers with knowledge of the matter told Bloomberg, and sent out a document last week allowing lenders to apply for ruble trading licenses, one of them said. Russias Micex Stock Exchange is making preparations to trade the ruble against the yuan in an initiative that has the backing of the countrys central bank, Ruben Aganbegyan, the head of the bourse, told reporters at a conference in Moscow today.

Given the risk to the dollar and U.S. assets from their fiscal position they want to reduce their dependence on the dollar as an invoicing currency, Bhanu Baweja, global head of emerging markets fixed income, currency and credit research at UBS AG, said in a phone interview from London. It makes sense for two large economies to exclude a third, overly dominant economy from their trading equation.

In the wake of the global financial crisis, which forced the U.S. economy into recession, both China and Russia have called for the dollars role in the financial system to be diluted. Volatility in major currencies is putting the global recovery at risk Zhang Ping, the head of Chinas National Development and Reform Commission, said last month. President Dmitry Medvedev last year suggested Russia, holder of the worlds third-largest foreign-currency reserves, reduce its holdings of dollar.

Yuan-Ringgit Trading

The yuan slid 0.06 percent to 6.7953 per dollar today paring its gains since the central bank ended a two-year dollar peg on June 19 to 0.4 percent. Russias ruble weakened 0.3 percent to 30.9225 per dollar by 2:15 p.m. in Moscow today, and has fallen 2.1 percent versus the greenback so far this year.

The euro gained 0.2 percent to 1.2712 per dollar today, and jumped 2.5 percent against the U.S. currency last year.

The Peoples Bank of China started yuan trading against the Malaysian ringgit between banks on Aug. 19. It already allows trading of the renminbi versus the dollar, the Hong Kong dollar, Japanese yen and the euro on its interbank market and Chinas Foreign Exchange Trading Center provides daily reference rates for these currencies. The yuan is a non-deliverable currency that is managed by the central bank to prevent volatility.

Fully Convertible

The ruble, which Bank Rossii targets against a dollar-euro basket, is a fully convertible currency and some Chinese banks have already been allowed to open ruble trading accounts, Russias Deputy Finance Minister Dmitry Pankin told reporters in Moscow today. The opening of cross-currency trade between the yuan and the ruble is more important for China, he said. They are gradually allowing more currency operations with yuan, he said.

China overtook Germany as Russias second-largest trading partner in the first six months of the year, helped by exports of Russian commodities such as aluminum, nickel and oil and gas. Trade between China and Russia jumped 50 percent to $30.7 billion in the first seven months of this year, compared with the same period in 2009, Chinas Ministry of Commerce said in a statement on Aug. 21.

The worlds fastest-growing economy is seeking to eliminate the need to convert yuan holdings in to dollars before converting in to rubles to pay for Russian commodities, Baweja said.

Dollar Elimination

China wants to reduce the volatility in its access to primary goods, he said. They want to reduce their dependence on the dollar in trade transactions.

HSBC Bank (China) Co. and Bank of Communications Co. completed the first yuan-ringgit transactions, according to the Foreign Exchange Trading Center, which is affiliated with the central bank. The central bank was investigating the possibility of offering new currency pairs on the interbank market, including ruble, won and ringgit, an unnamed official at the center said in April.

Gradually the dollar is being eliminated from the foreign-trade settlement flows, said Dariusz Kowalczyk, a Hong-Kong based senior economist at Credit Agricole CIB. People are beginning to trade Asian currencies without intermediation via the dollar.

To contact the reporters on this story: Artyom Danielyan in Moscow at [email protected]; Emma OBrien at [email protected]; Belinda Cao in Beijing at [email protected]