PRC sounded Death Knell for USD$ Petro$$

[我爸是李肛=Ass Loong]

https://www.rt.com/business/407704-china-oil-plans-yuan-contract/

China's launch of 'petro-yuan' in two months sounds death knell for dollar's dominance
Published time: 25 Oct, 2017 09:58 Edited time: 25 Oct, 2017 10:05
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© Paul Yeung / Reuters
One of the world’s top energy importers, China, is set to roll out a yuan-denominated oil contract as early as this year. Analysts call the plan, announced by Beijing in September, a huge move against the dollar's global dominance.
The so-called petro-yuan is a “wake up call” for investors who haven’t paid attention to the Chinese plans, according to the head of Graticule Asset Management Asia Adam Levinson, as quoted by Bloomberg.

Petrodollar demise? #Russia, #China, #Iran move oil trade away from US dollar – Jim Rogers https://t.co/zAWwWmjFiM

— RT (@RT_com) September 15, 2017
Earlier this year, the Chinese government announced plans to start a crude oil futures contract priced in yuan and convertible into gold. The contract will enable the country's trading partners to pay with gold or to convert yuan into gold without the necessity to keep money in Chinese assets or turn it into US dollars.

The new benchmark will reportedly allow exporters, such as Russia, Iran or Venezuela to avoid US sanctions by trading oil in yuan.

Venezuela ditches dollar for oil payments to dodge US penalties https://t.co/3erdJBw6yM

— RT (@RT_com) September 14, 2017
The analyst said the new contract would be able to serve as a hedging tool for Chinese corporations, as well as support the government’s broader plans to extend the use of the national currency in trade settlement.

According to Levinson, Chinese companies might grow into anchor investors in Saudi Arabia’s initial public offering of its national oil giant, Saudi Aramco.

#China could shatter petrodollar by compelling #SaudiArabia to trade oil in yuan https://t.co/rsqmY5VQZJpic.twitter.com/7hy8i4IVL5

— RT (@RT_com) October 11, 2017
At the same time, some analysts are skeptical of China’s ambitious plan to create its own benchmark.

“Game changer it is not — at least not yet. But it is another indicator of the beginning of the glacial, and I emphasize the word glacial, decline of the dollar,” said Gal Luft, co-director of the Institute for the Analysis of Global Security, as quoted by CNBC.

Ditching the $: Joint Russia-Iran bank to conduct business in national currencies https://t.co/msmRE5LWnXpic.twitter.com/TSSQc69Fdp

— RT (@RT_com) September 15, 2016
The end of US dollar hegemony has been a consistent message from Russian President Vladimir Putin.

“Russia shares the BRICS countries’ concerns over the unfairness of the global financial and economic architecture, which does not give due regard to the growing weight of the emerging economies. We are ready to work together with our partners to promote international financial regulatory reforms and to overcome the excessive domination of the limited number of reserve currencies,” Putin said two months ago during the BRICs summit in Xiamen.

 

[kryonlight]

China doesn't have enough gold to keep buying those billion barrels of oil daily unless they have the alien technology to convert sand into gold at efficient energy levels.

 

[我爸是李肛=Ass Loong]

That is immaterial totally. The issue is USD is the most risky Time-Bomb for a Global Financial Crisis of Dooms Day Level.

Everyone including Ang Mohs are looking around for solutions and alternatives to dodge being buried together with death of USD$. Chinese Yuan is not a perfect replacement but is so far THE MOST VIABLE.

Once USD$ role is ditched, it become a shit that is not worth tolerating / indulging / protecting, and all the countries had enough of shit from USD$ will be happy to see it dead, will let it die and don't give a fucking shit!

HUAT AH!

 

[spotter542]

The Yankees will invade / destroy countries that does not trade in the greenback.
Seen many examples already

 

[tanwahtiu]

The Yankees will invade / destroy countries that does not trade in the greenback.
Seen many examples already

Try China this time. They will not get pass SCS and Philippines island.

Even Indonesia is on Chinese side.

 

[virus]

Long passed time to dump Toylet paper us dollar, fed may flush the market with it but if no takers it will fall.

 

[JohnTan]

The Sing dollar is more stable and reliable. The Saudis should be persuaded to sell oil in Sing dollar. Keling Vivian where?

 

[我爸是李肛=Ass Loong]

https://www.rt.com/op-edge/408006-china-oil-petro-yuan-russia/

Putin’s revenge may see petro-yuan replace petrodollar

Bryan MacDonald is an Irish journalist, who is based in Russia
Published time: 27 Oct, 2017 17:07 Edited time: 27 Oct, 2017 17:29
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© Alexei Danichev / Sputnik
The key to the coming petro-yuan lies in Moscow. And, if the Chinese currency eventually succeeds in usurping the long-standing petrodollar, Washington will only have itself to blame.
News that China plans to launch a yuan-denominated oil futures contract by the end of this year has come as a surprise to many analysts. However, Russia experts aren’t startled in the slightest because this move has been coming since Moscow abandoned its quarter-century attempt to integrate with the West, following the 2014 Ukraine crisis. A catastrophe which the Kremlin blames on the United States and the European Union, as part of what it considers to be an attempt to reduce Russian influence in its "near abroad.”

READ MORE: US ‘Empire of Debt’ will go to war to stop emergence of petro-yuan – Max Keiser

Beijing’s scheme aims to shift trade in “black gold” from petrodollars to a proposed petro-yuan. Which benefits China by making its currency more attractive internationally and providing greater energy security. However, the biggest winners may well be in Moscow. Because any decline in the dollar’s status severely dilutes Washington’s ability to wage economic war against Russia, via sanctions.

As the world’s biggest petroleum producer, Russia is vital to Beijing’s project. And, in turn, as the planet’s largest crude importer and most sizable economy (measured by purchasing power parity), China is the only country with the heft to challenge American financial hegemony.

Of course, Vladimir Putin and Xi Jinping can’t achieve their aims alone. Because if the petro-yuan is to succeed, other leading oil-drilling nations, will need to come on board. And, while Iran, Indonesia, and Venezuela have indicated their interest in the project, the key is tempting the Arab states to trade in yuan. And this essentially means Saudi Arabian cooperation is the big prize.

Read more
Saudi King Salman's Moscow visit could create new Middle East dynamic
Plan of Action
Because, after all, the petrodollar was born in Jeddah in 1974, when the US Treasury Secretary William Simon convinced the Saudis that America was the safest place to park their oil revenue. And this cash flow has allowed the US to live beyond its means for decades.

However, in recent years, relations have become frayed, with Washington’s support for its fracking industry crushing petroleum prices and causing severe fiscal pain for the Saudis. Indeed, the primary reason for Riyadh’s developing detente with Russia has been a mutual desire to prevent a further slide in energy earings. As a result, earlier this month, King Salman made a historic visit to Moscow, where the yuan plan was surely on the agenda.

Informed analysts insist the Saudis will have to come on board: “I believe that yuan pricing of oil is coming and as soon as the Saudis move to accept it — as the Chinese will compel them to do — then the rest of the oil market will move along with them," Carl Weinberg, chief economist and managing director at High-Frequency Economics, told CNBC.

The Masterplan
The roots of the petro-yuan lie in a series of "color revolutions" in the former USSR, which convinced Moscow that the West would never treat it as an equal partner. This culminated in a March 2014 speech, in the Kremlin’s majestic Georgievsky Hall, where Vladimir Putin addressed over 1,000 Russian dignitaries. But this was no ordinary keynote. Because tensions between Russia and the West were at levels not seen since the Cold War.

Just a few weeks previously, Ukraine’s government had been violently removed and, amid the chaos, Moscow had hastily moved to reabsorb its “lost province" of Crimea. A strategically important peninsula, which had been controversially transferred to Kiev in 1954, when the two formed a union-state. At the same time, pro-Russian protests raged in the eastern Ukrainian cities of Donetsk and Lugansk.

Read more
'A US trade war with China will end US monopoly on global financial system’ – Jim Rogers
Back then, a stern Putin memorably said: “if you compress the spring all the way to its limit, it will snap back hard. You must always remember this.”

Indeed, ever since the United States imposed anti-Russia sanctions, first in 2012, ostensibly due to death of an accountant named Sergey Magnitsky, and the European Union, in 2014, in response to the Ukraine crisis, Moscow has been searching for ways to push back at the coercive measures.

The retaliation toward the EU was relatively straightforward: a food import ban, which has had the positive side effect of significantly boosting the domestic Russian agriculture industry, after initially contributing to inflation. However, due to a much smaller interdependency in trade, it’s proved harder to get even with Washington. Until now that is.

There is little doubt Moscow is hoping to engineer a US economic crisis to cripple its perpetual foe. Indeed, as CNBC also notes: “Russia and China have sought to operate in a non-dollar environment when trading oil. Both countries have also increased their efforts to mine and acquire physical gold if, or perhaps when, the dollar collapses.”

If the Saudis don’t play ball, they risk losing further market share. Especially, after new gas and oil pipelines from Russia to China begin operation next year. And there’s also the prospect that Chinese investors could boycott the IPO of state behemoth Saudi Aramco next year.

Meanwhile, there are high expectations for the petro-yuan. Because anything that weakens the American ability to wage economic war, and destabilize the Eurasian space, is a major win for the Kremlin. Furthermore, Putin may also consider the end of dollar dominance to be an important part of his legacy as he prepares for a likely final term as Russian President.

The statements, views and opinions expressed in this column are solely those of the author and do not necessarily represent those of RT.

 

[Victory2016]

US Dollar is now quite strong. A lull before the storm?

 

[我爸是李肛=Ass Loong]

https://www.rt.com/business/408670-russia-china-ruble-yuan-dollar/



Ruble-yuan trade between Russia & China makes dollar odd man out
Published time: 3 Nov, 2017 09:51
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© Alexandr Demyanchuk / Sputnik
Moscow and Beijing are looking to extend the three-year $25 billion yuan-ruble swap deal and seek greater use of domestic currencies in trade. Experts have told RT this is likely to cut dependence on the US dollar.
This week, Russian Prime Minister Dmitry Medvedev said “the financial regulators of the two countries are working on extending the bilateral currency swap agreement for the next three years."

“In 2016, the share of national currencies in payments for exports of Russian goods and services was 13 percent, imports 16 percent. In the first quarter of 2017, these figures rose to 16 percent and 18 percent, respectively,” said Russian Deputy Prime Minister Sergey Prikhodko.

Read more
Russia & China to extend currency swap agreement to lessen dollar dependence
Both China and Russia are committed to promoting their own currencies, and this means the dollar share is likely to shrink.

“That's a fact, and it's not just indicative of the volume of transactions in national currencies. Russia and China are already working together on several BRICS multilateral agreements. Trade in national currencies is just one aspect of the general trend that has emerged in the world over the past decade,” a Moscow-based analyst Mehdi Mehdiyev told RT’s German website, RT Deutsch.

Trade in national currencies protects countries against "external influences," helps to avoid risks of fluctuations in exchange rates; swap agreements also help reduce the budget deficit, Mehdiyev said.

Chinese financial expert Andrew KP Leung told RT Deutsch that for Moscow, trading in national currencies is a way to bypass Western sanctions, and for Beijing to promote the yuan.

"China is one of the largest buyers of Russian energy exports. The extension of the currency swap will reduce transaction costs for Russia and China. Trading in yuan will reduce Russia's dependency on the US dollar," said Leung.

Read more
China could shatter petrodollar by compelling Saudi Arabia to trade oil in yuan
Sarkis Tsaturyan, the Russian political scientist and editor-in-chief of the Russian expert network Realist, said that de-dollarization will be a long and painful process that can hit both China and Russia.

“Gradually, Russia and China are moving away from the US dollar, but this is a process that can take 15 to 20 years, as the economy of China is based on the dollar. The currency reserves of China were over $3 trillion in July 2017. Each Chinese household owns up to $2,000 in US government bonds. Under these circumstances, it is unlikely that Beijing will collapse the dollar. It would be a shot in its own knee,” he said.

At the moment, the US dollar’s share of the world trade is almost 43 percent, while the yuan has less than two percent. China has developed a payment system called CIPS for cross-border payments with the yuan to promote the currency as a global financial instrument.

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[Shut Up you are Not MM]

Golden Escalator after allowing women to drive and arresting dozen of prince now want to KILL USD$

https://www.rt.com/business/410056-saudi-arabia-petrodollar-economist/

Saudi Arabia wants to kill the petrodollar - economist
Published time: 16 Nov, 2017 13:42
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Saudi Arabia's King Salman welcomes Trump to dance with a sword during a welcome ceremony at Al Murabba Palace in Riyadh © Jonathan Ernst / Reuters
The United States and Saudi Arabia are so interdependent that a rift would mean disaster for the petrodollar system and the greenback’s reserve currency status, warns economist Brandon Smith. He is sure Riyadh is planning to ditch the dollar.
“I believe the next phase of the global economic reset will begin in part with the breaking of petrodollar dominance. An important element of my analysis on the strategic shift away from the petrodollar has been the symbiosis between the US and Saudi Arabia. Saudi Arabia has been the single most important key to the dollar remaining as the petrocurrency from the very beginning,” Smith wrote in an article for his website Alt-market.com.

Read more
China could shatter petrodollar by compelling Saudi Arabia to trade oil in yuan
The site claims its goal is to “facilitate barter networking and the exchange of knowledge and ideas for thriving in a faltering monetary environment.”

According to the economist, Saudi Arabia’s Crown Prince Mohammed Bin Salman has been seeking ways of cutting dependence on the US dollar. Smith says the country’s Vision 2030 program may be not about reducing oil’s share in the economy, but killing the petrodollar.

“Prince Mohammed's revolutionary "Vision for 2030" developed as he entered power was touted as a means to end Saudi reliance on oil revenues to support economic stability. However, I believe this plan is NOT about ending reliance on oil, but ending reliance on the US dollar. In fact, the plan indicates a move away from the dollar as the world's petrocurrency and a de-pegging of the riyal from the dollar,” he wrote.

A 1974 agreement between US President Richard Nixon and Saudi King Faisal meant Riyadh has been accepting dollars for all its oil exports.

“Prince Mohammed has also established much deeper ties to Russia and China, creating bilateral agreements which may end up removing the dollar as the mechanism for oil trade between the nations,” Smith added.

 

[Shut Up you are Not MM]

https://www.rt.com/business/406373-china-saudi-arabia-yuan-oil/

China could shatter petrodollar by compelling Saudi Arabia to trade oil in yuan
Published time: 11 Oct, 2017 14:43
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© Jianan Yu / Reuters
Beijing is likely to “compel” Saudi Arabia to sell crude oil in yuan, and others will follow, according to the chief economist and managing director at High Frequency Economics Carl Weinberg. This will hit the US dollar, he says.
In an interview with CNBC Weinberg said China has become a key player in the oil market since overtaking the US to become the world's largest importer.

Read more
Petrodollar end looming as China & allies dump it in oil trading - Jim Rogers
Saudi Arabia has "to pay attention to this because even as much as one or two years from now, Chinese demand will dwarf US demand," Weinberg told the media.

"I believe that yuan pricing of oil is coming and as soon as the Saudis move to accept it — as the Chinese will compel them to do — then the rest of the oil market will move along with them," he added.

A 1974 agreement between US President Richard Nixon and Saudi King Faisal meant Riyadh has been accepting dollars for all its oil exports.

However, recently, countries like China and Russia have been looking to exclude the greenback from bilateral oil trade. Russia and Saudi Arabia are the most significant exporters of oil to China, alternating in top spot.

China has already said it wants to start a crude oil futures contract priced in yuan and convertible into gold.

Veteran investor Jim Rogers told RT last month that countries are getting more concerned about trading in dollars, because “if the US gets angry at you, they just set enormous pressure on you that can even get you out of business.”

“China, Russia, and other countries understand this, and they are trying to move world trade and world finance away from that,” said Rogers.

In July, Russia and China signed a 68 billion yuan ($10 billion) investment fund to ease ruble-yuan settlements.

 

[Shut Up you are Not MM]

http://www.marketoracle.co.uk/Article60774.html

PetroYuan Can Accelerate the De-Dollarization
Currencies / China Currency Yuan Nov 15, 2017 - 03:36 PM GMT
By: Submissions

The move away from Petrodollar
In 1974, US President Richard Nixon and King Faisal from Saudi Arabia struck a deal. This deal gave birth to the petrodollar system which still lasts until this day. The deal involves Saudi Arabia selling oil to its largest buyer back then, the U.S. In turn, the U.S. provides Saudi Arabia with money, military aid, and political support. The Saudis then reinvest billions of their petrodollar revenue back in U.S. Treasury bonds.



Since that seminal deal, Oil has traded in U.S. dollars almost exclusively, even when the buyers and producers are not American. The consequence of the dollar-for-oil trade is massive. It creates a huge demand for dollars, therefore establishing US Dollar’s hegemony in world trade. The arrangement has also allowed the U.S. to run a huge deficit and borrow money at very low interest rates to finance the U.S. spending and growth for the next 4 decades.

In recent years however, several nations have tried to abandon petrodollar. The incentives come from the increasingly used tactic of economic sanctions by the Western nations. Washington for example has targeted the Russian economy and imposed an economic burden to force Moscow into submission. In response, Russia has gradually moved away from the reliance to U.S. dollar. Russia worked with China to create alternative to the SWIFT payment system which is not controlled by Western interest. China and Russia have also agreed to use yuan and ruble for bilateral oil trading. A non-dollar trading system will allow countries to bypass and counter the impact of the sanctions. This move away from petrodollar has lessened the US ability to use the dollar as a weapon.

The Alternative of Petroyuan
Today, China is replacing the U.S. position as the top oil importer. From China’s point of view, it makes sense to use Yuan to price the world’s most important commodity. Just as petrodollar creates more demand for US dollar and support U.S. economy in the past 4 decades, petroyuan can also stimulate demand for things in China, whether goods and services, Panda bonds (yuan-denominated bonds), or securities.

To this end, Beijing is said to introduce oil futures benchmark denominated in Yuan in coming months. In July, the Shanghai INE (International Energy Exchange) has completed four-step trial in crude oil futures denominated in yuan. The INE would try to launch it by the end of the year. In the bid to establish petroyuan, in recent years China has also been actively courting the biggest oil producer, Saudi Arabia, to accept Yuan as the currency for oil trade. Many believe that as soon as Saudi Arabia moves to accept Yuan for oil trade, the rest of the oil players may follow suit. The issue however is China’s closed capital market and the inability to move Chinese currency out of the country. To alleviate this fear, China is said to provide an option for the oil producers to convert the Yuan to physical gold in Shanghai / Hong Kong exchange.

For sure, it won’t be easy to replace the dollar and there are still challenges as China needs to convince major countries to participate. In addition, Saudi Arabia can meet a blowback from their long-term ally the U.S. Recent development however suggests Saudi Arabia’s relationship with China is getting warmer. In May this year, King Salman oversaw the signing of deals with China worth $65 billion. King Salman also publicly said he hoped China can play a greater role in Middle East affairs. Then in August this year, China and Saudi Arabia inked another $70 billion of new deals. The deal includes investment, trade, energy, postal service, communications, and media.

Although U.S Dollar may not lose its status as the world reserve currency overnight, the launching of Yuan-denominated crude oil benchmark can mark a new beginning of the end of Petrodollar.

What happens to dollar and Oil with the introduction of Petroyuan?

An overlay of weekly chart between Oil (CL_F) and inverted DXY (Inverted US. Dollar) above shows a strong positive correlation between the two. When Oil prices go up, the inverted DXY chart also goes up which means that US dollar declines. They also have the same major tops and bottoms in 2008, 2011, and 2015.

The introduction of Yuan-denominated oil futures benchmark by China in coming months may represent a big shift in the global order. It could potentially start the progressive decline in US Dollar. To start, there will be lesser demand for U.S. securities across the board. Secondly, Carl Weinberg, chief economist at High Frequency Economics estimates it will take away between $600 billion and $800 billion worth of transactions out of the dollar.

Based on the correlation chart above, we should also see Oil priced in dollar starting to rise as the U.S. dollar lose its value. Not only that, we should also see Gold and other commodity’s price rallying in dollar’s term. The chart below shows an overlay between Gold and Oil which also shows a positive correlation

If you enjoy this article, check our work and join Free 14 days Trial to see Elliott Wave Forecast in 78 instrument, including Oil, Gold, and Dollar Index (DXY) as well as getting access to Live Trading Room, Live Session, and more

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[tanwahtiu]

Watch out for part 2 opium trade coming to China and ME soils soon from bankrupt beggar AMJS..

 

[Shut Up you are Not MM]

Xijinping just rang up to Golden Escalator:

http://news.xinhuanet.com/politics/2017-11/16/c_1121968037.htm

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习近平应约同沙特国王萨勒曼通电话
2017-11-16 20:23:38 来源： 新华网

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　　新华社北京11月16日电 国家主席习近平16日应约同沙特国王萨勒曼通电话。

　　萨勒曼对中共十九大胜利闭幕和习近平再次当选中共中央总书记表示诚挚祝贺，强调中共十九大一定会指引中国人民取得更大成功。萨勒曼表示，在我同习主席共同引领下，沙中关系取得巨大发展。沙方愿通过沙中高级别联合委员会深入推进两国合作，对接沙特“2030愿景”同中国“一带一路”倡议，深化能源、金融等领域合作。沙特愿意成为中国在海湾地区的重要伙伴，致力于加强和深化沙中全面战略伙伴关系，这符合我们两国利益，也有利于世界与地区和平稳定。

　　习近平感谢萨勒曼来电祝贺。习近平指出，上个月闭幕的中共十九大对中国发展具有里程碑意义。会议确定了中国发展的指导思想，对中国现代化建设作出了战略部署。我们有信心带领中国人民，朝着中华民族伟大复兴的崇高目标迈进。

　　习近平强调，中沙元首保持密切沟通十分重要。中国和沙特是全面战略伙伴，战略互信和互利合作不断发展。无论国际和地区形势如何变化，中方深化同沙特战略合作的决心不会改变。中方支持沙特维护国家主权、实现更大发展的努力，愿同沙方一道，深化战略合作，稳步推进“一带一路”倡议同“2030愿景”的战略对接，通过两国高级别联合委员会机制落实好各领域合作，使中沙关系更多更好惠及两国人民和地区其他国家人民。

　　两国元首还就共同关心的国际和地区问题交换了看法。

 

[taksinloong]

https://www.rt.com/business/411984-china-iran-us-dollar/

Iran & China seek to eliminate US dollar from bilateral trade
Published time: 5 Dec, 2017 12:57
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© Thomas White / Reuters
Tehran and Beijing are determined to find ways to avoid using the US dollar as a settlement currency in trade, according to a report by Iranian economic daily Financial Tribune.
The topic of de-dollarization was raised at a meeting between leading Chinese government political adviser Chen Yuan and Iranian central bank officials in Tehran.

Read more
Iran suggests Russia help ‘isolate the Americans’ by ditching dollar
“Rial-yuan’s bilateral monetary agreement can have a significant role in increasing the volume of trade between the two countries and in this regard, we have conducted a series of negotiations with the central bank of the Republic of China’s president,” said the Central Bank of Iran’s Governor Valiollah Seif.

Tehran has been pursuing the goal of eliminating the dollar in its trade, and has been trying to sign currency swap agreements with a few target countries.

Chen said that Iran and China should develop their banking links and also underlined the unfairness of the existing financial system, dominated by a few developed countries. He added, other nations would do better if the unfair system is eliminated.

“We could use the experiences of European countries in establishing the euro as a common currency between many countries, which is not exclusively controlled by a single country. But until then, we need to utilize the maximum available capacities to expand our banking relations,” he was quoted as saying by the Iranian daily.

However, any such initiatives require time and effort by several countries, the Chinese official said.

 

[我爸是李肛=Ass Loong]

https://www.forbes.com/sites/dominicdudley/2017/01/30/iran-to-ditch-dollar/#6fe997ce6715


Iran To Ditch The Dollar In Wake Of Trump's 'Muslim Ban'

Dominic Dudley , Contributor I write about business and economics in the Middle East Opinions expressed by Forbes Contributors are their own.
The Iranian government is to stop using the US dollar in its official statements, according to a report in the local English-language daily the Financial Tribune.

The decision was announced by Central Bank of Iran governor Valiollah Seif during a television interview on the evening of January 29 and, according to the paper, is due to take effect from the start of the new fiscal year on 21 March. It will affect all official financial and foreign exchange reports.

The move is significant in the light of the recent ‘Muslim ban’ by US President Donald Trump, which prevents anyone from Iran and six other Muslim-majority countries from entering the US. The Iranian government has vowed to take “reciprocal measures” and has said it will stop issuing visas to US citizens. Some exceptions to this may be made though. Iran's Ministry of Foreign Affairs has said that it has yet to decide on whether to allow a US freestyle wrestling team into the country. The team is due to compete in the Wrestling World Cup in Kermanshah province in mid-February.

While the White House has said the order to bar Iranians and others was made to tackle the threat of terrorism, it is notable that since 1975 no Americans have been killed in terrorist attacks in the US by the citizens of the countries included in the ban. It has also been widely noted that Trump’s business empire does not extend to the seven targeted countries but others where he does have business interests have not been included in the order, even though their citizens have been involved in terrorist outrages in the US.

The governor of the Central Bank of Iran Valiollah Seif (R) talks with the head of the Iranian Atomic Energy Organisation Ali Akbar Salehi, ahead of a press conference in Tehran in January 2016 after international sanctions on Iran were lifted (Photo: ATTA KENARE/AFP/Getty Images)

As a result of years of sanctions imposed by a succession of US administrations, Iran has very little trade with the US. Its most important trading partner is the UAE, which accounts for around 24% of all Iranian imports and exports. China is not far behind with 22%, followed by Turkey, India and the EU, all of which account for around 6% of Iran’s trade.

This leaves open the question of what Iran will use to replace the dollar. Seif said in the television interview that “we have to set a currency as the basis of financial reporting that has better stability and greater application in our foreign trade,” according to the Financial Tribune.

He added that Iran has the option of "selecting a basket of currencies or choosing the currency that plays the biggest part in foreign trade". That suggests that the euro could be a logical alternative for the dollar.

However, the decision to drop the dollar could prove to be complicated for Iran, given that its most important export is oil which is priced in dollars. The country is on course to earn $41bn from oil sales this fiscal year. Switching its reporting to another currency will add a degree of currency risk and volatility and is likely to complicate matters for the authorities. At this stage, however, it is not clear how they will deal with this issue.

 

[我爸是李肛=Ass Loong]

https://www.bloomberg.com/news/arti...ee-to-expand-trade-to-600-billion-in-a-decade

China, Iran Agree to Expand Trade to $600 Billion in a Decade
By
Golnar Motevalli
January 23, 2016, 9:16 AM EST

Chinese President Xi Jinping, left, and Iranian President Hassan Rouhani.

Source: Pool/Iranian Presidency/Anadolu Agency via Getty Images
China and Iran mapped out a wide-ranging 25-year plan to broaden relations and expand trade during the first visit by a Chinese leader to the Islamic republic in 14 years.

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[我爸是李肛=Ass Loong]

https://www.huffingtonpost.com/alastair-crooke/petrodollar-us-saudi-policy_b_6245914.html



Non-Dollar Trading Is Killing the Petrodollar -- And the Foundation of U.S.-Saudi Policy in the Middle East

By Alastair Crooke

Anna Lubovedskaya via Getty Images


BEIRUT -- A profound transformation of the global monetary system is underway. It is being driven by a perfect storm: the need for Russia and Iran to escape Western sanctions, the low interest rate policy of the U.S. Federal Reserve to keep the American economy afloat and the increasing demand for Middle East oil by China.

The implications of this transformation are immense for U.S. policy in the Middle East which, for 50 years, has been founded on a partnership with Saudi Arabia.

ESCAPING SANCTIONS

As economic sanctions are increasingly part of the West's arsenal, those non-Western countries that are the target -- or potential target -- of such sanctions are devising a counterpunch: non-dollar trading. It would, in effect, nullify the impact of sanctions.

Whether in yuan or roubles, non-dollar trading -- which enables countries to bypass U.S. claims to legal jurisdiction -- will transform the prospects facing Iran and Syria, particularly in the field of energy reserves, and deeply affect Iraq which is situated between the two.

President Putin has said (in the context of reducing Russia's economic vulnerabilities) that he views the dollar monopoly in energy trade as damaging to the Russian economy. Since hydrocarbon revenues form the most substantive part of Russia's revenues, Putin's desire to take action in this area is not surprising.

In the face of sanctions, Putin is seeking to reduce its economic dependence on the West. Russia has signed two "holy grail" gas contracts with China and is in negotiations to offer the latter sophisticated weaponry. It is also in the process of finalizing significant trade deals with India and Iran. All of this will be to the benefit of Iran, too: the Russians recently announced a deal to build several new nuclear power plants there.

THE RISE OF THE PETRODOLLAR

The dollar's role as the world's reserve currency was first established in 1944 with the Bretton Woods agreement. The U.S. was able assume this role by virtue of it then having the largest gold reserves in the world. The dollar was pegged at $35 an ounce -- and freely exchangeable into gold at that rate. But by 1971, convertibility into gold was no longer viable as America's gold resources drained away. Instead, the dollar became a pure fiat currency (decoupled from any physical store of value), until the petrodollar agreement was concluded by President Nixon in 1973.

The essence of the deal was that the U.S. would agree to military sales and defense of Saudi Arabia in return for all oil trade being denominated in U.S. dollars.

As a result of this agreement, the dollar then became the only medium in which energy exchange could be transacted. This underpinned its reserve currency status through the need for foreign governments to hold dollars; recirculated the dollar costs of oil back into the U.S. financial system and -- crucially -- made the dollar effectively convertible into barrels of oil. The dollar was moved from a gold standard onto a crude oil standard.

U.S. interest rates were then managed so that oil exporters (who formerly looked to gold as the basis of their reserves) would be indifferent to whether they stored their currency reserves, earned from oil exports, in U.S. treasuries, or in gold. The value was equivalent.

According to Sprott Global, a specialist U.S. energy consultancy:

The Fed consistently managed Fed funds rates to keep oil prices steady, even when it required mid-teens interest rates and back-to-back recessions in 1980-1982. Since U.S. Fed funds rates were managed to preserve U.S. creditors' and oil exporters' purchasing power in oil terms, the system proved acceptable to most nations.

While the petrodollar arrangement worked well for nearly 30 years, the arrangement began to wobble around 2002-2004. . . Oil prices began steadily rising in 2002 and 2003 while Fed funds rates remained low to mitigate the fallout from the 2001 U.S. recession/tech bubble.

As a result, the number of barrels of oil that could be purchased for a face value U.S. Treasury bond declined sharply. . . After maintaining a range of 55-60 barrels of oil per U.S. Treasury from 1986-1999, a $1,000 face value U.S. Treasury went from buying 60 barrels of oil in 1999 to under 30 by early 2004.

TOO MANY DOLLARS

But what may ultimately be seen to have proved fateful to the petrodollar system has been the policy of zero interest rate policy and "quantitative easing" pursued so unrestrainedly since 2008. Effectively, energy producers saw that the U.S. economy had now become so dependent on low interest rates that it could never again manage to keep oil prices steady relative to U.S. treasuries without blowing up the global financial system. The U.S. economy had now become so dependent on low interest rates that it could never again manage to keep oil prices steady relative to U.S. treasuries without blowing up the global financial system. The U.S. economy had now become too "financialized" to withstand anything more than a token interest rate hike.

The petrodollar system, which had allowed the U.S. dollar to supplant gold as the backing for the oil trade from 1973-2002, was broken.

Energy producers began to accumulate real assets (such as real estate), and returned to purchasing physical gold in lieu of U.S. treasuries. Finally this year, the long established re-circulation of petrodollars back into the U.S. financial system came to an end -- according to BNP. "The oil producers will effectively import capital amounting to $7.6 billion. By comparison, they exported $60 billion in 2013 and $248 billion in 2012," Reuters reported. "This will be the first year in a long time that energy exporters will be sucking capital [and liquidity] out," noted David Spegel, global head of emerging market sovereign and corporate research at BNP.

THE STRAW THAT BREAKS THE PETRODOLLAR'S BACK

This then, is the backdrop to Putin's remarks about the dollar monopoly and against which he is likely to craft his response to Saudi Arabia's decision to message the market into accepting that the Kingdom would not defend $100 oil, but will be content to see the price drop 30 percent. (And whatever the market circumstances -- and other Saudi objectives -- that may have contributed to the fall in price, there is little doubt that"'oil price war" is the interpretation that President Putin will place on it).

This new oil price drop simply is crushing producers' currencies in foreign exchange markets. The combination of the petrodollar losing its ability to act as a store of value, combined now with exchange rate blues, may be the straw that breaks the producer "camel's back" in respect to OPEC and dollar denomination.

IRAN AND RUSSIA VS. SAUDI ARABIA?

Such a moment would seem ripe for Russia and Iran to begin a gradual challenge to Saudi's leadership of the OPEC cartel and to the dollar-denominated energy system, if enough OPEC members and other producers are prepared to rebel. Iran has been lobbying hard in this direction.

In the longer term, Russia might take up Prince Bandar's suggestion that Russia become a key determiner of oil prices and output -- but in a cartel of its own making, rather than in the manner Bandar had proposed in July 2013 when he said: "Let us examine how to put together a unified Russian-Saudi strategy on the subject of oil. The aim is to agree on the price of oil and production quantities that keep the price stable in global oil markets," according to one diplomatic account.

WHY THE ROUBLE OR YUAN INSTEAD OF THE DOLLAR?

And why should producers opt for roubles or yuan? Well, both China and Russia have recently been big buyers of physical gold. Russia's present gold reserves would back 27 percent of the narrow rouble money supply. That is a high ratio -- far in excess of any other major country, and also in excess of the U.S. Fed's original stipulated gold coverage minimum. Moreover, Russia is a large net exporter of goods and energy, notwithstanding sanctions. So Russia's gold reserves, by implication, are likely to continue to grow, rather than decline.

In the longer term, holding roubles or yuan may allow producers to escape the damaging inflationary effects of a dollar system now dependent for its stability on low interest rates and monetary expansion.

These prospective changes are still speculative, but are potentially highly significant. The petrodollar has lasted for over 41 years, and has been the driving force behind America's economic, political and military power. It would be ironic, indeed, were the tensions with Russia inadvertently to become the driver of America finally losing its petrodollar card.



Alastair Crooke
Fmr. MI-6 agent; Author, 'Resistance: The Essence of Islamic Revolution'

 

[我爸是李肛=Ass Loong]

http://news.xinhuanet.com/english/2017-07/03/c_136414245.htm


Iran, China, France sign 4.8 billion USD gas deal
Source: Xinhua| 2017-07-03 21:24:58|Editor: An

Representatives from cooperation parties attend the deal signing ceremony in Teheran, Iran, on July 3, 2017. Iran and a consortium of China National Petroleum Corporation (CNPC), France's Total signed a 4.8-billion dollar deal here on Monday to develop a major Iranian gas field in the Persian Gulf. (Xinhua/Ahamad Halabisaz)

TEHRAN, July 3 (Xinhua) -- Iran and a consortium of Chinese and French energy giants signed a multi-billion-dollar deal here on Monday to develop a major Iranian gas field in the Persian Gulf.

The deal followed a Memorandum of Understanding (MOU) signed by the National Iranian Oil Company and a consortium involving China National Petroleum Corporation (CNPC), France's Total and Iran's Petropars in November 2016 to develop Iran's South Pars (SP11) gas field.

At Monday's signing ceremony, Iran's Petroleum Minister Bijan Namdar Zanganeh, Total's CEO Patrick Pouyanne and Lv Gongxun, representatives of the CNPC were present.

According to Zanganeh, the contract for development of the gas field is worth 4.8 billion U.S. dollars. The contract will be carried out in two phases with a total period of 20 years.

At each stage, 2.4 billion U.S. dollars of foreign fund will be allocated for the project, the minister said, adding that Total will operate the SP11 project with a 50.1 interest alongside CNPC with 30 percent and Petropars with 19.9 percent.

Iran expects to produce as much as 56 million cubic meters per day of natural gas from the field once it is in full swing, he said.

The South Pars field is a natural gas condensate field located in the Persian Gulf. It is the world's largest gas field shared between Iran and Qatar.

According to the International Energy Agency, the field holds an estimated 51 trillion cubic meters of in-situ natural gas and some 50 billion barrels of natural gas condensate.