Wednesday, November 24, 2010

China, Russia Stop Using Dollar in Bilateral Trade

China and Russia have ditched the US dollar and will use their own currencies for bilateral trade, Premier Wen Jiabao and Vladimir Putin announced late on Tuesday.

"About trade settlement, we have decided to use our own currencies," Putin said at a joint news conference with Wen in St. Petersburg.

In the past, the two countries generally used the dollar for bilateral trade.

On a practical level, this reduces international demand for the dollar a bit. It also puts another nail in the coffin of the dollar as a global reserve currency. It's not too good for the U. S. as the only remaining global superpower.

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