China
Discussion between President Xi and President Putin - relating to financial transaction
I expect that the digital yuan (e-CNY) will be used for international transactions and as a reserve currency soon.
This will be an alternative to the USD/SWIFT.
In the recent meeting between President Xi Jinping of China and President Putin of Russia, this was one important topic.
Here is an opinion from an observer printed in the Asia Times.
Quote:
Putin and Xi once again discussed one of their key themes in bilaterals and BRICS meetings: the need to keep increasing the share of the yuan and ruble in mutual settlements – bypassing the US dollar – and opening new stock market avenues for Russian and Chinese investors.
Bypassing a SWIFT mechanism “influenced by third counties” then becomes a must. Ushakov diplomatically put it as “the need to intensify efforts to form an independent financial infrastructure to service trade operations between Russia and China.”
Russian energy businesses, from Gazprom to Rosneft, know all there is to know not only about US threats but also about the negative effects of the tsunami of US dollars flooding the global economy via the Fed’s quantitative easing.
This Russia-China drive is yet another dimension of geoeconomic, geostrategic and demographic power rapidly shifting towards Eurasia and possibly foreshadowing the advent of a new world system related to other matters Putin-Xi certainly discussed: the interconnection of Belt and Road with the Eurasia Economic Union (EAEU), the expanded reach of the Shanghai Cooperation Organization (SCO) and the coming Chinese presidency of BRICS in 2022.
The US – with US$30 trillion in debt, 236% of its militarized GDP – is virtually bankrupt. Russia-China have already experimented with their alternative payment systems, which will inevitably integrate.
The most important banks in both countries will adopt the system – as well as banks across Eurasia doing business with them, and then vast swaths of the Global South. SWIFT, in the long run, will be used only in exceptional cases if China and Russia have their way.
Tan Kin Lian
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