Putin Pushes to Dump the Dollar

Over the past week it was revealed that China is gradually dumping billions of dollars in US treasuries. Truth be told though, China isn’t the only country interested in unhinging itself from the dollar system. The global currency war has begun in earnest, and now Russia is getting in on the action.

Putin recently announced that he was drafting a bill that would remove the dollar and the euro from trade agreements between Russia’s closest trading partners in the CIS. The CIS is a regional association of former Soviet States, which includes Russia, Armenia, Belarus, Kazakhistan, Uzbekistan, Tajikistan, Moldova, Kyrgyzstan, and Azerbaijan. By creating a single marketplace between all of these countries, it would, according to the Kremlin “help expand the use of national currencies in foreign trade payments and financial services and thus create preconditions for greater liquidity of domestic currency markets.”

As early as 2007 there was talk of leaving the dollar on the part of countries like Russia, China, Iran, and even Saudi Arabia. Slowly but surely, talk is turning into action as more and more countries are quietly making their own currency arrangements outside of America’s financial sphere. Little by little, the dollar’s supremacy is being chipped away, and it’s only a matter of time before it is completely gone.