Is the dollar about to lose its place in the world? Does it matter?
Mish probably has the right take, and I would only point out that this is not money that is being traded, just tallies. The significance here is two part:
1. Trade that might not have otherwise occurred without the sanctions will now occur. No USA involved.
2. The tally of who owes whom what (not money, but credit) will be noted in rials and roubles, not in dollars. The big deal here is only that USA will not know what those tallies are, since it no longer will be keeping them.
It's no big deal as far as keeping tallies go, it just means USA gets less trade. And when the USA provokes Russia with economic shenanigans, the Russians can react. We should work on making good things happen and stop trying to interfere in other countries business.
Feel free to forward this by email to three of your friends.
“Such a bank would be able to exchange money between the two sides using rials and rubles and put aside dollars, euros and pounds,” he added.
Unilateral sanctions imposed on Iran’s banking sector by the US and the European Union over Tehran’s nuclear energy program and the recent Western bans against Russia over Ukraine have prompted the two countries’ trade officials to boost economic cooperation.
Mish probably has the right take, and I would only point out that this is not money that is being traded, just tallies. The significance here is two part:
1. Trade that might not have otherwise occurred without the sanctions will now occur. No USA involved.
2. The tally of who owes whom what (not money, but credit) will be noted in rials and roubles, not in dollars. The big deal here is only that USA will not know what those tallies are, since it no longer will be keeping them.
It's no big deal as far as keeping tallies go, it just means USA gets less trade. And when the USA provokes Russia with economic shenanigans, the Russians can react. We should work on making good things happen and stop trying to interfere in other countries business.
Feel free to forward this by email to three of your friends.
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