Sanctions could lead to Russia-Japan currency swaps

H/t reader M.G.:

If Japan adopts the electronic currency no media will discuss (regardless most nations now use it in lieu of the US dollar), and join with the east in direct trade, leaving the dollar out, the US dollar will be down to itself (the USA) and the struggling Euro zone.

This would be a huge blow for the power of the dollar. Until Fukushima, Japan was the biggest US lender and dollar holder……..

Why is nobody covering this story?”

Sanctions could lead to Russia-Japan currency swaps (RT, Sep 3, 2015):

The Japan Bank for International Cooperation (JBIC) says the country is leaning towards direct ruble-yen currency swaps, as Western sanctions are making it difficult to conduct business using US dollar transactions.

“We’re now studying that [the effects of ruble devaluation]. We need some of the swap arrangements with the local banks. We are elaborating opportunities with Russian banks such as Gazprombank, VTB, VEB… Because of the US sanctions, we cannot use the US dollar anymore, we have to switch to other currencies,” JBIC’s senior managing director Tadashi Maeda told Sputnik news agency on Thursday on the sidelines of the Eastern Economic Forum (EEF) in Vladivostok.

The interest rate is very high and could “hinder” swaps, Maeda added, talking about the use of the Russian ruble.

In December, the central banks of China and Russia effectively switched to domestic currencies in trading using swaps and forwards as a way of reducing the influence of the US dollar and foreign exchange risks. The three-year 150 billion yuan swap arrangement has boosted trade turnover between the two countries, which has already reaching $88.4 billion. Moscow and Beijing expect trade turnover to reach $100 billion in 2015.

1 thought on “Sanctions could lead to Russia-Japan currency swaps”

  1. Thank you for posting this very important story.
    Nobody in the media will even mention the fact the US dollar has lost over 50% involvement in world trade…..Before November of 2010, the US dollar was used in 100% of all international trade. Every nation would convert their currency to the USD before completing transactions.

    The advent of the electronic currency, based on the Sucre, introduced by Hugo Chavez in Spring of 2010 would change all of that. The Sucre model translates the value of each currency at the time of transaction, making conversion to any world reserve currency obsolete. Nations could trade directly with each other, using their own currencies, leaving the dollar out.

    What freedom for many! Russia and China adopted it in November of 2010, China spread it around the world…..Some nations (not all) who now use electronic currencies instead of the dollar include Russia, China, India, Turkey, Iran, Australia, South Africa and most emerging African economies, Brazil and much of South and Central America, and Canada…….There are more, but I cannot recall them all.

    This has thrown a huge monkey wrench into the power of the US dollar…..and nobody in the media will touch this story. I caught it when it happened because I am an economics geek…..Good thing, the stories vanished quickly, but I wrote them down while these changes were happening.

    I heard Kerry say if the US didn’t pass the Iran deal, we might lose world reserve currency status……That was the first time I have heard anyone mention the subject, even in passing. How an Iran deal can change what has already happened makes no sense………Iran was not the cause…….

    The US economy is no longer the center of the world……Japan and the Euro zone are the two major supporters of the dollar. If Japan moves over, we are down to the foundering Euro nations, over half are close to bankruptcy. The dollar could indeed collapse because fewer and fewer use it.

    But, nobody says a word…………………


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