dollar as the reserve currency of the world. The United Nations has been issuing reports that openly call for an alternative to the U.S. #8: The United Nations Continues to Push For A New World Reserve Currency Who imports the most oil from Saudi Arabia? It is not the United States, it is China…Saudi Arabia and China have teamed up to construct a massive new oil refinery in Saudi Arabia…so how long is Saudi Arabia going to stick with the petrodollar if China is their most important customer? #7: Saudi Arabia Likely to Abandon Use of Petrodollar in Dealings With China For example, it has been reported that India will begin to use gold to buy oil from Iran. Iran has been one of the most aggressive nations when it comes to moving away from the U.S. #6: India To Use Gold To Buy Oil From Iran What will happen to the petrodollar if other oil producing countries in the Middle East follow suit?

The UAE is a fairly small player, but this is definitely a threat to the petrodollar system. dollar and use their own currencies in oil transactions with each other. #5: China and United Arab Emirates To Use Own Currencies In Bilateral TradeĬhina and the United Arab Emirates have agreed to ditch the U.S. At this point, approximately 70,000 Chinese companies are using Chinese currency in cross-border transactions. In 2009, China became Africa’s biggest trading partner, and China is now aggressively seeking to expand the use of Chinese currency on that continent.Ĭhina seems absolutely determined to change the way that international trade is done. Who do you think is Africa’s biggest trading partner? It isn’t the United States. #4: Use Of Chinese Currency Growing In Africa Russia and China have been using their own national currencies when trading with each other for more than a year now. Leaders from both Russia and China have been strongly advocating for a new global reserve currency for several years, and both nations seem determined to break the power that the U.S. #3: China and Russia Use Own Currencies In Bilateral Trade “The five major emerging economies of BRICS - Brazil, Russia, India, China and South Africa - are set to inject greater economic momentum into their grouping by signing two pacts for promoting intra-BRICS trade…The two agreements will enable credit facility in local currency for businesses of BRICS countries… expected to scale up intra-BRICS trade that has been growing at the rate of 28% over the last few years but, at $230 billion, remains much below the potential of the five economic powerhouses.” The following is from a news source in India: A new agreement will promote the use of their own national currencies when trading with each other rather than the U.S. The BRICS continue to flex their muscles. #2: The BRICS Plan To Use Own Currencies When Trading With Each Other Currently businesses in both countries need to buy US dollars before converting them into the desired currency, adding extra costs.” Editor’s Note: Enjoying the article so far? If so, please DONATEĪ little something so I can continue to bring you such informative articles. The deal will allow firms to convert the Chinese and Japanese currencies directly into each other. “China and Japan have unveiled plans to promote direct exchange of their currencies in a bid to cut costs for companies and boost bilateral trade. The following is from a BBC report about that agreement: This was an incredibly important agreement that was virtually totally ignored by the U.S.

#1: China And Japan To Use Own Currencies In Bilateral TradeĪ few months ago, the second largest economy on earth (China) and the third largest economy on earth (Japan) struck a deal which will promote the use of their own currencies (rather than the U.S. The following are 10 reasons why the reign of the dollar as the world reserve currency is about to come to an end: Is There a Viable Alternative to the Dollar as the Reserve Currency?.dollar should continue to be so preeminent if the Chinese economy is about to become the number one economy on the planet. economy by 2016 China is sitting there and wondering why the U.S. Snyder goes on to say, in has the second largest economy on the face of the earth, and the size of the Chinese economy is projected to pass the size of the U.S. This paragraph must be included in any article re-posting to avoid copyright infringement.]

Words: 1583 Financial Site For Sore Eyes & Inquisitive Minds ), abridged (…) and/or reformatted (some sub-titles and bold/italics emphases) for the sake of clarity and brevity to ensure a fast and easy read. dollar in international trade… is going to have massive implications for the U.S. dollars – but there are big changes on the horizon…Some of the biggest economies on earth have been making agreements with each other to move away from using the U.S. Today, more than 60% of all foreign currency reserves in the world are in U.S.

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