Russia China Sign Deal To Bypass Us Dollar
Russia and China's Agreement
Russia and China have signed a deal to bypass the US dollar in their bilateral trade. The two countries have been working on this for several years, and the deal finally came to fruition in 2019. The agreement will allow them to use their own currencies for transactions, avoiding the need for the US dollar.
Why Did They Do It?
The reason behind this move is to reduce their dependence on the US dollar, which has been the world's primary reserve currency for decades. Both countries have been hit hard by US sanctions and have been looking for ways to protect themselves from the impact of these sanctions. By bypassing the US dollar, they are able to trade with each other without being subject to US sanctions.
What Does This Mean For The US?
This move by Russia and China is a blow to the US dollar's status as the world's primary reserve currency. It also undermines the US's position as the dominant economic and political power in the world. If more countries follow suit and start bypassing the US dollar, it could lead to a significant decline in the value of the currency and the US's global influence.
What Are The Implications For The World?
The implications of this deal are far-reaching. It could lead to a shift in the balance of power from the West to the East, with China and Russia becoming more dominant players in the global economy. It could also lead to a more multipolar world, with several countries vying for influence and power.
Conclusion
The deal between Russia and China to bypass the US dollar is a significant development in the global economy. It shows that countries are becoming more willing to challenge the dominance of the US and to assert their own interests. The implications of this move are still unclear, but it is clear that it will have a profound impact on the global economy and the balance of power in the world.