Russia and China sign three agreements that promise big problems for the dollar

Russia and China conclude three agreements to topple US dollar

Russia and China have entered into three agreements that will boost the Russian economy and create problems for the US dollar, an article published on Chinese Sohu website said.

The West continues its pressure on Russia and has no intention to ease it, the article on the website says. However, the sanctions have boomeranged on the European economy.

At the same time, Russia has taken several steps to maintain and increase income in the new realities, the publication said.

According to Chinese analysts, Moscow and Beijing negotiated three new rules that would not only help boost the Russian economy, but also challenge the supremacy of the US dollar.

First off, the Chinese authorities allowed the import of wheat from all over Russia. This is a win-win agreement for both countries as China is a major buyer of wheat, and Russia is a reliable supplier for China.

Secondly, Russia and China expanding energy trade. Last year, the two countries signed an agreement on cooperation in the field of oil and gas trade. This type of cooperation has become even stronger this year.

Thirdly, Russia and China switch to national currencies when paying for energy resources. Previously, the parties used the US dollar in settlements, but now Moscow and Beijing may only disregard US dollar fluctuations.

Other states watch Russia and China and follow their example, the article says.

The undermined confidence in the US dollar contributes to the acceleration of process of its demonopolisation as the main means of international settlements and investments. In fact, the US dollar is "a piece of paper based on trust," Alexei Drobinin, Director of the Foreign Policy Planning Department of the Russian Foreign Ministry said in an interview with Problems of National Strategy Magazine.

"Let's be honest here, the dollar is nothing more than a piece of paper based on trust, and the US government will never pay off this country's galloping public debt that has recently exceeded $31 trillion," the diplomat said.

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Author`s name Petr Ermilin
Editor Dmitry Sudakov