Empire strikes back: Russia, India and China abandon the dollar

© AFP 2018 / Nicholas Compresident USA Donald trump. Archival photoEmpire strikes back: Russia, India and China abandon the dollar© 2018 AFP / Nicholas Kamm

Deputy Prime Minister Yuri Borisov said that India will pay for the supply of missile systems s-400 «Triumph» rubles. Not far behind and China: according to the head of VNESHECONOMBANK Igor Shuvalov, the agreement on mutual settlements in national currencies can be signed before the end of this year. What benefits will Russia get from de-dollarization of foreign trade and who else is ready to join the payments in national currencies — in the material RIA Novosti.

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A contract to supply India systems s-400 signed on 5 October this year during the visit of Vladimir Putin in new Delhi. Experts have estimated it at five billion dollars. At the rate the Bank of Russia is 331 billion rubles.

The biggest and apparent benefit for both countries to trade in national currencies is the lack of major fluctuations in the recalculation.

Thus, on 1 January this year for the ruble gave 0,89 Indian rupees, and after 10 months of 0.88 rupees. The maximum rate for this year is 0.98 rupees per ruble, the minimum of 0.85 rupees. This means that the corridor volatility was 0.13 rubles for the entire year.

For comparison: on 1 January the dollar was worth 57,04 rubles, and November 1 — already 65.6 ruble. The maximum value for this year is 69.9 ruble, minimum — 55.6 rubles. Corridor volatility 14.3 ruble. The difference in this indicator between pairs of the ruble/dollar and ruble/rupee turns out fabulously — 11 000%.

Another no less important problem in settlements using the us dollar — a high probability of sanctions, which Washington is handing out right and left.

In April, the Indian media reported that the financial structure of new Delhi and NCR have frozen about two billion dollars allocated to pay for critical projects, including repair leased from Russia a nuclear submarine Chakra (project 971 «Pike-B»).

The reason the White house included «Rosoboronexport» in the sanctions list. For financial organizations this effectively means a ban on all payments in U.S. currency.

To cancel a calculation in dollars between Moscow and Beijing are pushing and the volume of mutual trade. Last year turnover between Russia and the United States amounted to 23.6 billion, and between Russia and China — $ 84.9 billion (a difference of almost 360%).

Moscow, Beijing and Delhi by example show the world how to get rid of the dollar dependence. It is noteworthy that all three countries are the largest developing economies, while the US economy developed. Means, mutual settlements in national currencies hold the promise for other developing economies and is able finally to save world trade from dollar hegemony.