Alasdair Macleod: Plans for a New Eurasian Financial & Monetary System
- Alasdair Macleod: EAEU & China Plan for a New Financial & Monetary System
by Alasdair Macleod, via https://kingworldnews.com/
…. Designing A New Currency …
Plans for a new Eurasian Monetary System
For some time, the Eurasian Economic Commission has been discussing the currency aspects of trade between member states. The Commission represents China, Russia, and the former Soviet regions of Central Asia, all of which are members of the Eurasian Economic Union (EEU). According to Sergei Glazyev, the EEU minister in charge of integration and macroeconomics, the objective was to create a Eurasian monetary and financial system, excluding foreign currencies. The proposal was to remove exchange controls for cross-border settlements within the Eurasian membership, and thereby replace the dollar as the commonly used settlement medium between them.
–
Since then, the project has acquired a new urgency due to western currency sanctions against Russia. According to 24KG, which is a news agency based in Bishkek, only last week the Eurasian Economic Union and China confirmed that they will develop a new international currency (that is international between EEU members and China). The currency and the financial system that goes with it will be based on the national currencies and the prices of exchange-traded commodities. There are no further details other than this statement.
–
It appears that the intention is to create a sort of SDR but with links to commodity prices and unlike the SDR to be usable at local level. Presumably, the basket of commodities will include oil, and it is interesting that coincidentally Saudi Arabia is considering selling oil for Chinese yuan, calling an end to the petrodollar, and aligning itself more closely to the Eurasian superpowers behind this scheme. Let us put aside the impracticalities of the intended currency for a moment and consider the implications.
–
read more.
end