China-Russia announces new financial system & currency

[shalom]

Global developments: China-Russia announces new financial system & currency - Debt repayments in dollars stop! - WarNews247 Confirmation

Torpedo in dollar and Euro

27/06/2022 - 21:33 in Main topics : Russia , China

0

This is the new powerful Russia-China "synthetic" currency: Digital & Commodity - Which countries are abandoning the dollar?


Article writer: Vassilis Kapoulas



The announcement of the new Eurasian financial system by China marks global developments as WarNews247 had long ago announced. We had said since 19/4 that there will be official announcements. This started today. And now the developments are moving at a very fast pace.



China announced the creation of the "Eurasian IMF" and Putin announced the creation of a new currency. In fact, the accession countries to the wider Eurasian financial system will have no reason to repay the debts they made in dollars or euros!



So there comes a big torpedo in dollars and euros. Many countries will rush to join the new monetary system whether they are from the South or the Middle East.



The IMF was replaced today.



The SWIFT system is replaced.



Read also



Torpedo in dollar & euro: China-Eurasia create new currency and financial system - "YES" India in Russia



The Eurasian IMF

The People's Bank of China creates a yuan reserve with five other countries in cooperation with the Bank for International Settlements to compete with the dollar and support other volatile economies



This is the Eurasian IMF, in the first phase with the participation of countries such as Malaysia, Singapore, Indonesia, Hong Kong and Chile, which will each contribute 15 billion yuan (about $ 2.2 billion). in order to have access to lending, in case they need it.



The announcement was made by the People's Bank of China - and followed last week by the publication of the Sino-Russian plan by Putin himself to create the "anti-dollar" for international trade, with the participation of countries such as Brazil, India and South Africa.



"When they need liquidity, the participating central banks will not only be able to draw on their contributions, but will also have access to additional financing through a secured liquidity window, " the bank said.



According to the report, the funds will be stored at the Bank for International Settlements.



Meanwhile, last month, China's foreign exchange reserves - the world's largest - rose for the first time in 2022, government data showed. The country's reserves increased by $ 80.6 billion to $ 3.13 trillion.



Read also



Dollar & US Release: Israel Makes Chinese Yuan a Reserve - Dramatically Reduces the Euro!



Watch video. The toast of V. Putin



Video Player



00:00

00:20





New currency - Statements by V. Putin

According to the Russian president, experts are currently working to create a reliable system of international payments. The countries of the organization can be connected to the Russian financial messaging system, which, together with the further distribution of the Mir card, will help strengthen the financial base of the BRICS.



In this context, the Russian leader stressed that Russia's trade turnover with the "five" countries in the first quarter of 2022 increased by more than a third, reaching $ 45 billion.



President Vladimir Putin has indicated that the new reserve currency will be based on a basket of coins from members of the BRICS group: Brazil, Russia, India, China and South Africa.



"The issue of creating an international reserve currency based on our countries' basket of currencies is under consideration ," Putin told the BRICS Business Forum.



"We are ready to work openly with all the fair partners."



ING market manager Chris Turner commented:



"This is a move to address the perceived US hegemony of the IMF.



It will allow the BRICS to build their own sphere of influence and currency within that sphere. "



Russia's move follows Western sanctions imposed on Ukraine over the war, in addition to removing the country from the global financial system, restricting access to its dollars and putting pressure on its economy.



"The speed with which Western nations and their allies have imposed sanctions on Russian stockpiles of FX (freezing about half) has undoubtedly shocked the Russian authorities," said Turner of ING.



"Russia's central bank has admittedly acknowledged so much, and no doubt some BRICS nations - especially China - have noticed the speed and secrecy with which the US Treasury Department moved," he added.



The sanctions likely encouraged Moscow and Beijing to work for an alternative to the IMF's international reserve, Turner said.



One possibility is that the currency of the BRICS basket could attract the reserves not only of the group members, but also of the countries that are already within their sphere of influence, he suggested. These include nations in South Asia and the Middle East.



And that's the big problem for the US and the dollar.


What will be the main features of the new currency

We remind you of what we have said:



-The new currency-financial system has been planned since 2016, when the Trump tariff war started. It is a synthetic currency that plays the role of anti-dollar and cancels all known enforcement systems (IMF, SWIFT, etc.) and creates others accordingly.



-The new currency divides the world into East and West. It will include Russia-China, the countries of Eurasia, the BRICS countries, India, Iran, Turkey as founding members and the aim is to include all the countries of the South.



-The new world currency will be digital and will move off-bank. So it has a lot in common with the so-called "cryptocurrencies" but it is not exactly that. These are "stablecoins".



-The countries that will join the new system, will have no reason to repay the debts they made in dollars or euros! Therefore, all the countries of the South will rush to join the new zone, to nationalize their energy reserves without sanctions from the IMF, etc. This will lead the rival zone, ie the dollar and the West, in conditions of banking and economic collapse, the even shrinkage.



-The value of the new currency will come from the synthesis of the values ​​of the currencies and from the market value of goods: Such as hydrocarbons, wheat, sugar, coffee, soy, water (!), Other natural resources and 15 more goods, mainly metals. The simulations show that this composition makes it more resistant to Leman Brothers financial crises. This is why Russia and China collected wheat (despite the fact that it consumes rice).

link