“Dropping the dollar? Not very realistic”
Published: 12 October, 2009, 20:50
Edited: 13 October, 2009, 03:00
TAGS: Putin, Asia, Russia, Crisis, Currencies, Russia and the global economy, Economy
Speculation about dropping the dollar as the key trading currency, which would be of interest for the Russia-China partnership, aren’t realistic, said Natalia Zaderey from the Institute of Far Eastern Studies in Moscow.
“The Chinese economy is very dependent upon the dollar, so dropping it might be of interest for the country in the long-term perspective,” Zaderey noted.
“But talking about right now in times of the financial crisis, a lot of people are speculating about these measures, but they don’t seem very realistic in the upcoming years because the financial reserves, for the most part, are in dollars, and trade between Russia and China and the US is very big”.
The issue has been raised as Russian premier Vladmir Putin is in Beijing, concluding deals worth 5.5 billion dollars.
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1 comment
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The dollar is here to stay for the forseeable future. World leaders know that trying to drop the dollar will result in a severe world depression. Even if world leaders choose to keep the dollar strong, the world can still fall into a severe depreciation worse than the world has ever seen when the Chinese bubble busts. The bubble will probably bust within the next two years unless leaders like P. M. Putin take steps to avert the disaster. The question is not if, but when the China bubble busts.