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NEWS

Russia and China Move Toward

Gold, Away from Dollar
BRADFORD HANSON · JANUARY 11, 2018

 6

Rumors abound that new economic ties mark a

step toward a new gold standard and abandonment
of the US dollar.

THE MONETARY REGIMES of China and Russia,

two of the world’s most resource-rich nations, are
drawing closer with every passing day.
In the latest push for convergence, China
has established a payment versus payment (PVP)
system for Chinese yuan and Russian ruble
transactions in a move to reduce risks and
improve the efficiency of its foreign exchange
transactions.

The PVP system for yuan and ruble transactions,

designed to streamline commerce and currency
transactions between the two nations, was
launched on Monday after receiving approval
from China’s central bank, according to a
statement by the country’s foreign exchange
trading system.

It marks the first time a PVP system has been

established for trading the yuan and foreign
currencies, said the statement, which was posted
on Wednesday on the website of the China Foreign
Exchange Trade System (CFETS). PVP systems
allow simultaneous settlement of transactions in
two different currencies.

According to CFETS, the system would reduce

settlement risk as well as the risk of transactions
taking place in different time zones, and improve
foreign exchange market efficiency. Of course, if
the two countries had a blockchain-based
settlement system, they would already have all
this and much more.

CFETS said it plans to introduce PVP systems for

yuan transactions with other currencies based on
China’s Belt and Road initiative, and complying
with the process of renminbi internationalization.
Russia, however, is a top priority: the world’s
biggest oil producer recently became the largest
source of oil for China, the world’s top energy
consumer.

To be sure, the monetary convergence between

Beijing and Moscow is hardly new.

The most notable recent development took place

in April, when the Russian central bank opened its
first overseas office in Beijing on March 14,
marking a step forward in forging a Beijing-
Moscow alliance to bypass the US dollar in the
global monetary system, and to phase-in a
gold-backed standard of trade.

As the South China Morning Post reported at the

time, the new office was part of agreements made
between the two neighbours “to seek stronger
economic ties” since the West brought in sanctions
against Russia over the Ukraine crisis and the
oil-price slump hit the Russian economy.

At the time, Vladimir Shapovalov, a senior official

at the Russian central bank, said the two central
banks were drafting a memorandum of
understanding to solve technical issues around
China’s gold imports from Russia, and that details
would be released soon, to which we said that If
Russia – the world’s fourth largest gold producer
after China, Japan and the US – is indeed set to
become a major supplier of gold to China, the
probability of a scenario hinted by many over the
years, namely that Beijing is preparing to
eventually unroll a gold-backed currency,
increases by orders of magnitude.

Furthermore, also around the same time, as the

Russian central bank was getting closer to China,
China was responding in kind with the
establishment of a clearing bank in Moscow for
handling transactions in Chinese yuan.

The Industrial and Commercial Bank of China

(ICBC) officially started operating as a Chinese
renminbi clearing bank in Russia on Wednesday
this past Wednesday

“The financial regulatory authorities of China and

Russia have signed a series of major agreements,
which marks a new level of financial
cooperation,” Dmitry Skobelkin, the
abovementioned deputy head of the Russian
Central Bank, said. “The launching of renminbi
clearing services in Russia will further expand
local settlement business and promote financial
cooperation between the two countries,” he added
according to.

Irina Rogova, a Russian financial analyst told the

Russian magazine Expert that the clearing center
could become a large financial hub for countries
in the Eurasian Economic Union.

***

The creation of the clearing center, and the launch

of PVP systems enables the two countries to
further increase bilateral trade and investment
while decreasing their dependence on the US
dollar. It will create a pool of yuan liquidity in
Russia that enables transactions for trade and
financial operations to run smoothly.

In expanding the use of national currencies for

transactions, it could also potentially reduce the
volatility of yuan and ruble exchange rates.

The clearing center is one of a range of measures

the People’s Bank of China and the Russian
Central Bank have been looking at to deepen their
co-operation, Sputnik reported.

But one of the most significant measures under

consideration is the previously reported push for
joint organization of trade in gold.

In recent years, China and Russia have been the

world’s most active buyers of the precious metal.
On a visit to China last year, the deputy head of
the Russian Central Bank Sergey Shvetsov said
that the two countries want to facilitate more
transactions in gold between the two countries.

“We discussed the question of trade

in gold. BRICS countries are large
economies with large reserves of gold
and an impressive volume of
production and consumption of this
precious metal. In China, the gold
trade is conducted in Shanghai, in
Russia it is in Moscow.

Our idea is to create a link between

the two cities in order to increase
trade between the two markets,”

First Deputy Governor of the Russian Central

Bank Sergey Shvetsov told Russia’s TASS news
agency.

In other words, China and Russia are continuing

to shift away from dollar-based trade, to
commerce which will eventually be backstopped
by gold, or what is gradually emerging as an
Eastern gold standard, one shared between Russia
and China, and which may day backstop their
respective currencies.

Meanwhile, the price of gold continues to reflect

none of these potentially tectonic strategic shifts,
just as China — which has been the biggest
accumulator of gold in recent years — likes it.

***

Source: Russia Insider

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6 COMMENTS

JIMB
JANUARY 11, 2018 AT 12:40 AM — REPLY
Now tell us what all of this means to you?
Can you summarize for some of us who are
less fiscal-minded? Just curious about your
thoughts…

OVER IT
JANUARY 11, 2018 AT 2:33 AM — REPLY

“….the move was approved by the Chinese

CENTRAL BANK…”

“…the Russian CENTRAL BANK…”

That’s all you need to know. Sounds like the

jews are getting ready to kill the American
goose because she’s close to laying the last
golden egg for them.

WALT HAMPTON
JANUARY 11, 2018 AT 10:51 PM — REPLY

You can be sure that the long arm

of the Rothschilds are having a
hand in this…and more likely…
…two.

KEVIN ALFRED STROM

JANUARY 12, 2018 AT 5:42 PM — REPLY
 I am not so sure that the Chinese and
Russian central banks are part of the same
cabal as “ours.” Be that as it may, I see this
move as mainly motivated by a deep
distrust of, and doubts about the future of,
the Jewish/US financial system—and a
desire to become independent of it. If this
is brought to full fruition, it will be a
milestone in the decline of the Washington
regime and the parasites who depend on it.

ARVIN N. PREBOST
JANUARY 13, 2018 AT 1:05 PM — REPLY

But is this not a variant of what Hitler

did, which brought upon him armed
violence?

WALT HAMPTON
JANUARY 15, 2018 AT 8:57 AM — REPLY

Rothschilds have indeed been the

paymasters
of armies when the occasion arose to serve
their needs.

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