Sputnik / Vitaliy Timkiv
Turkey is starting to use national currency for import of high-protein wheat from Russia.
According to a October 2 report from the Russian-based SovEko analytical center, Turkey will purchase 30,000 tons of high-protein wheat from Russia and will pay in Rubles. About 17,000 rubles (around $260) per ton of wheat is expected to be paid.
Earlier, Turkish President Recep Tayyip Erdogan announced that Turkey would increase the use of national currencies in its trade with major trading partners, for example Russia. On the other hand, Russia is alsow moving in this direction because the use of national currency in bilateral trade allows minimize the negative impact of external factors.
Meanwhile, India is reportedly preparing to make payments through the rupee-rouble route in the deal to buy four Talwar-class frigates from Russia.
This approach will allow the sides to avoid any kind of US economic sanctions aimded at undermining the economic and military cooperation between the side.
Wow, excellent decision. Now president Erdogan and Putin leads the world.
Well played Turkey.
Bumper crop of Russian wheat is depressing wheat prices worldwide affecting negatively US and French farmers since their costs are a lot higher than Russian costs.
Local currency exchanges allows countries like India, Turkey, China, Iran, EU …etc to trade effectively with Russia and cash on the efficiencies of lower expenses by staying out of the dollar realm.
In Australian dollars, the low point was 2016, when prices fell to $200 a ton, they are now back up to $280, but still a long way from the $350 a ton they hit in 2014.
Soon there will be Two Worlds, those stuck using the US Dollar and being blackmailed by the US, and those free from it and US monetary blackmail.
I think that at some point there will be a run in the dollar. The US has printed so many dollars there is a glut. To stop the decline of the dollar, the US is trying to reduce the number of dollars in circulation, and also sells other currencies down. They do the same thing with gold, they buy gold futures, and then deliberately sell at a loss. It works, but it increases Government debt, eventually the US will reach a tipping point, and the collapse of the dollar will come quite quickly. A lot of other currencies will get dragged down by the US dollar. Once it’s over, it will be countries with low debt that will have the best credit rating, and the most valuable currencies. Also it will be good for the American people, who will be able to get jobs, once the dollar is competitively priced.
Paper gold is only good as long as the music keeps playing. Sadly when the fall comes people will, I believe not be allowed to get to bank safety deposit boxes either. Physical gold I think in its jewelry wire or simple rings form will be the best to have.
Since early 1970’s US dollar value has relied on being reserve currency for Gulf State oil sales – & in return the US protects the absolute Gulf authoritarian states. If any state wants to purchase crude oil on international market, the payment system is in US dollars – creating constant demand and high value for the dollar – and then the Gulf States pump that dollar value right back into US Treasury bonds. The result is that US currency maintains an artificially boosted value on international currency market – this has enormous beneficial effects for US business’ in the international sector. With artificially boosted currency value, US companies can buy foreign goods & services at rates that do not reflect the real values of the exchanges. Safe to assume the US state will fight tooth & nail to protect this advantage for as long as possible.
If sovereigns coordinate purchases, (using local currencies) then runs upon currencies by western financial elites could become a thing of the past.
Exactly, which is why the US has always destroyed any nation that tried.
Next time the Sultan gets uppity Putin can remind him where his food as well as his energy comes from, and how no one else wants his currency. Very diplomatically.