Thursday, May 22, 2014

Media Coverage of Energy Deal between Russia and China

Now that the $400 billion energy deal is done, below are links to various media reports on the deal and also another agreement to bypass the US dollar in trade. It is interesting to note how different media sources cover it and what they emphasize. Some mention the fact the US dollar will not be used and some don't.

From the BRIC's post

Here is the last paragraph from this article.

"Earlier on Tuesday, Russian bank, VTB, signed a currency swap deal with Bank of China to bypass the US dollar."

From Russia Today  - no mention of US dollar

Voice of Russia  - no mention of US dollar

Al Jazeera  - whole article is about bypassing the US dollar

"In a symbolic blow to U.S. global financial hegemony, Russia and China took a small step toward undercutting the domination of the U.S. dollar as the international reserve currency on Tuesday when Russia’s second biggest financial institution, VTB, signed a deal with the Bank of China to bypass the dollar and pay each other in domestic currencies."

China Daily   - no mention of US dollar

Forbes  - talks about the Yuan competing with the dollar

"China wants the renminbi to become a truly international currency, and needs foreign centres for this to happen; and CIC has previously bought a stake in Moscow’s stock exchange. The RMB is already used to settle cross-border trade transactions between the two countries, and has been serving that purpose since 2010. If Russia becomes an instrument through which RMB internationalization can happen, then a mutually beneficial arrangement may be struck: a more international Chinese currency, and a diversity of foreign exchange sources for China."

Bloomberg - no mention of the dollar

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