The Central Bank of Russia has included the Chinese yuan in its reserve currency basket, TASS reports. The move is expected to boost the yuan’s presence in the Russian financial market.
Hannibal: China and Russian bonding cannot spell good news, especially considering the current situation in Syria (which China has now entered following Russian involvement). Russia was also condemned by the White House for encroaching upon Turkish air space after their jet was allegedly shot down. So behind the curtain, we have China and Russia teaming up and strengthening each other’s currency while USA, and their mother, Europe build a stronger bond. I don’t want to say WWIII but this the recipe for it.
As of December 31, 2014, the latest data available, the US dollar was still dominating Russia’s forex basket at 44 percent. The second most-used foreign currency was the euro with 42 percent. The British pound made up 9.5 percent.
Hannibal: Yes, the dollar may still be dominant but conspiracy theorists have been predicting a crash in the USD for years, and this news only adds more fuel to the fire.
According to Vesti.Finance, the Central Bank made the decision in November, but hasn’t bought the yuan yet.
Hannibal: Central Banks are the leaders of global oppression, just in case you didn’t know.
The Chinese currency started trading on the Moscow Exchange in 2010. Since then, the volume of trades has grown significantly. This August Russian traders bought a record 18 billion yuan (about $2.8 billion), which is four times more than in August 2014.
Russian investors began looking east, after the US-led group of Western countries imposed sanctions against Russia over Ukraine. Sanctions have deprived Russia access to Western capital markets. In particular, they affected state-owned banks like Sberbank, VTB, Vnesheconombank, Gazprombank and Rosselkhozbank (Russian Agriculture Bank).The lenders were cut off from long-term (over 30 days) international financing.
Hannibal: When you own the money, you own control and power. By cutting off Russia from strengthening their financial situation, the European powers (including America) keep their foot on Russia’s neck and hold onto their precious power. Keep in mind that America’s currency is backed by nothing but the asses of it’s citizens. The only thing keeping it stable is the ignorance of Americans and international domination via bullying.
This news comes before the International Monetary Fund’s announcement on Monday whether to include the yuan in its Special Drawing Rights (SDR). The US and Japan, who have been the main obstacle to the yuan being included in the reserve currencies basket, are unlikely to thwart the deal, Eswar Prasad, a professor at Cornell University and former head of the IMF’s China Division told Reuters in October.