Recent Posts and Categories

Dropping the US Dollar in Trade | China and Argentina agree to trade in Yuan

OWoN: Yet another step of the world disentangling from US control.

Does the West smell the coffee? Argentina will be selling their wares to China and Russia while collecting Yuan. In short order time they will divert their sales of fresh produce that is not GMO, while reducing their dependency on USD revenue.

Why does anyone imagine they would willingly return? By doing this they are being corralled by the BRICS. Once established, for better or for worse, it will be difficult to win them back.

In the meantime the North America will have to start figuring out where its fresh produce supply will come from to feed its vast Military, Police, State Workers and Welfare mouths, if not South America in the winters.




De-Dollarization Continues: China-Argentina Agree Currency Swap, Will Trade In Yuan


Zero Hedge
By Tyler Durden
7 September 2014

It appears there is another nation on planet Earth that is becoming isolated. One by one, Russia and China appear to be finding allies willing to 'de-dollarize'; and the latest to join this trend is serial-defaulter Argentina. As Reuters reports, China and Argentina's central banks have agreed a multi-billion dollar currency swap operation "to bolster Argentina's foreign reserves" or "pay for Chinese imports with Yuan," as Argentina's USD reserves dwindle. In addition, Argentina claims China supports the nation's plans in the defaulted bondholder dispute.

Having met 'on the sidelines' in Basel, Switzerland in July, Argentine and Chinese central banks agreed to a currency swap equivalent to $11b that Cabinet Chief Jorge Capitanich said could be used to stabilize reserves.. (as Reuters reports)

Argentina, which defaulted on its debt in July, will receive the first tranche of a multi-billion dollar currency swap operation with China's central bank before the end of this year, the South American country's La Nacion newspaper reported on Sunday.

The swap will allow Argentina to bolster its foreign reserves or pay for Chinese imports with the yuan currency at a time weak export revenues and an ailing currency have put the Latin American nation's foreign reserves under intense pressure.

La Nacion said Argentina would receive yuan worth $1 billion by the end of 2014, the first payment of a loan worth a total $11 billion signed by Argentina's President Cristina Fernandez and her Chinese counterpart in July.

In adition, Bloomberg reports:

People’s Bank of China Governor Zhou Xiaochuan expressed his support for Argentina in its legal fight against holdout bondholders

Isolated, indeed... as China and Russia roam the world making friends with every nation that the US is "involved" with...

link

1 comment :

  1. The BRICS winning the economic war...apparently the sanctions aren't working and war is not an answer. In war there has to be an aggressor and an aggressee...when only one side is advancing an illegal aggression; there is isolation.

    For UsA there will be inflation, maybe hyperinflation...with prices already at premium prices for groceries.

    Many nations joining the BRICS; appears to be reverse sanctions...somebody is smart!

    ReplyDelete

If your comment violates OWON's Terms of Service or has in the past, then it will NOT be published.

Powered by Blogger.