Russia and China leave US dollar in the cold

A sustainable economy0
Image copyright The Bell
The Bell believes the dollar will collapse

The Russian decision to disconnect its currency from the International Monetary Fund (IMF) and return to a sovereign currency will have far reaching implications for the USA and its allies according to Bloomberg and The Bell this week.

The impact of Russia’s decision to go it alone will be exacerbated by the Chinese decision to join the IMF. According to The Bell, the relative strength of the Chinese economy will lead investors to prefer bonds payable in Chinese RMB than in US dollars.

The joint effect of Russia protecting its currency by separating from the IMF and China competing with the US dollar in the same market is likely to make it difficult for the US to raise funds by printing more money, a practice known as quantitative easing.

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