I posted the other day about Belarus was going to buy all oil and gas from Russia in Rubles, no Dollars. Today The CIS countries (Russian Federation, Belarus, Ukraine, Moldova, Tajikistan, Armenia, Azerbaijan, Turkmenistan, Kazakhstan, Kyrgyzstan, and Uzbekistan) are getting the formalities out of the way to start making the Russian Ruble a International currency.
Heads of national banks and finance ministers from the CIS countries will discuss the use of the ruble to settle accounts with Russia for energy deliveries. Currently, payments are made in dollars, which are then converted into rubles in Russia. The extra expense of converting currency is reflected in the oil and gas prices, so the change would be beneficial to the importers. The change would also give the ruble a big boost as a regional currency, since the majority of the countries of the former USSR are consumers of Russian energy sources. (Link)
The Dollar has become such a burden to the stability of the Global financial system, that countries such as Russia, China, Japan and of the European Union are looking at alternatives.
Kyle & Svet
comments always welcome.