Goodbye, green. Europe abandons the dollar

© RIA Novosti / Natalia to Seliverstova in fotobanka dollar on the scoreboard, the currencyGoodbye, green. Europe abandons the dollar© RIA Novosti / Natalia to Seliverstova the image Bank

The European Commission has developed a package of measures to increase use of the Euro in such strategic sectors of the economy as purchases of energy and raw materials. The main goal of Brussels is to weaken the role of the us currency in the energy sector, particularly in operations with Iran, which is under sanctions from Washington. How the world gets rid of the dollar — in the material RIA Novosti.

This is war

Today, all transactions in dollars or conducted through U.S. Bank automatically fail the trade relations under the legal system of the United States. When Washington imposes sanctions, market participants can either choose to terminate the business relationship with the sanctioned state or to be excluded from the global financial system.

While the Americans cared about maintaining good relations with its traditional allies, the system worked extremely effectively. However, total trade war, launched by Donald trump, dramatically changed the situation.

«The United States is now an economic war against the tenth part of the world with a total population of about two billion people and total GDP of over 15 trillion dollars, — said the Executive Director of the Institute for analysis of global security Gal Luft in comments to CNBC. — In addition, thousands of citizens of different States included in the U.S. Treasury prepared a list are not eligible to use the global financial system, controlled from the United States.»

As noted Laft, Washington’s desire to deal with all the dissenters formed a critical mass of dissatisfied, necessary to create a parallel financial system, is not available for the long arm of the United States.

Shows an example of de-dollarization Russia. A month ago Deputy Prime Minister Yuri Borisov said that Moscow will sell a missile system With-400 «Triumph» Delhi for the Russian currency: contract amount — about 331 billion rubles. With Turkey, Moscow also agreed to buzdolabi trade after Washington imposed sanctions against Ankara.

A large Russian company «Surgutneft’», «Gazprom» and «Severstal» have asked foreign contractors to move to settlements in euros.

The U.S. currency is forced out and the market borrowings. In November, the Russian company conducted three major Eurobond issue for a total amount equivalent to $ 1.6 billion, «Gazprom» has placed one issue in euros, «RusGidro» — two issues in yuan and rubles.

And on 27 November, the Ministry of Finance has announced the successful placement denominated in the European currency bonds for the equivalent of one billion euros.

«We have no intention to move away from the dollar, dollar go from us. And those who make the relevant decisions, they are shooting themselves not in the foot a little higher, because such instability in the calculation in dollars is the desire of many economies of the world to find an alternative reserve currency and create independent of the dollar settlement system», — said the President of Russia Vladimir Putin at the forum «VTB Capital» «Russia calls!» at the end of November.

The head of state said that now is actively working with key trading partners on the creation of systems independent from the interbank SWIFT system.

Not only Russia

China successfully uses his initiative of «One belt and one road» as an instrument to attract countries to settle in yuan, not dollars.

From the dollar in favor of yuan refused Pakistan and Iran. In addition, Iran and Iraq have agreed on mutual trade in national currencies.

Now to the camp of the «otkazniks» joined the EU firmly intends to switch to euros in payments for energy and commodities. This was reported by the Financial Times, citing a draft document of the EC, which will be submitted to EU leaders at the upcoming December summit.

Now, more than 80 percent of the EU’s imported energy is paid in dollars, and countries — members of the EU, in accordance with the project document should ensure that contracts concluded «within the framework of intergovernmental energy agreements», will continue to be denominated in euros only.

To contribute to increasing the global use of the Euro reflects «political, economic and financial unit weight» in a more multipolar world, specified in the project document. European experts stress that it «will increase economic sovereignty of the Union taking into account the policy pursued by US President Donald trump.»

The gold dollar is better

Economists note that the decline of the dollar as the world currency accelerate macroeconomic trends.

Professor, University of California, Berkeley Barry Eichengreen explains that the power of modern financial technologies, undermines the goal of global monetary monopoly.

Today companies and banks in different countries easier to switch between currencies, choosing one that is most effective for a particular transaction.

And in case of financial crises the Central banks and big investors stocking up on gold. One of the leading American financiers, the founder of the world’s largest hedge Fund Bridgewater Associates billionaire ray Dalio points to gold as one of the most reliable instruments to hedge currency and political risks.

And there is a reasonable explanation: if the dollar system collapses under the weight of huge US debt, gold is definitely not worthless. Keeping the function of means of payment in world trade, the asset reduces the dependence on any currency.

«I am confident that the global reset will happen when the world’s governments will need to get rid of debt and they tie everything to the price of gold. That’s why countries like Russia and China accumulate gold — they know what can happen in a few years,» agrees Keith Neumeyer, Chairman of the Board of Directors of First Gold Mining.