Wednesday, April 9, 2014

More rhetoric on petrodollar out of Russia

This artcile out of Russia Today quotes a member of the Russian Parliament as introducing legislation to do away with pricing oil and gas transactions in US dollars. The article notes however that other Russian authorities say this is not possible in the short term.

A few things to note from this article:

-Russia seems to be taking the lead right now in efforts to bypass the US dollar

-The article mentions using the Ruble instead of the dollar and backing it with gold

-The article notes Russia and China are already moving in this direction

-The article appears right before the April G20 and IMF meetings

It is clear that the movement away from the US dollar as sole global reserve currency continues, but the pace of that movement remains unclear. Some think it will take years while others think by the end of this year the dollar will be in sharp decline.

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