... commodities driven economy, it highly depends on the prices of gas and oil products[4]. The Russian economy has yet to diversify, which makes it vulnerable if there is another global economic downturn.
Russia has been expressing its dissatisfaction with the US dollar and the US dominated global financial system, and it’s easy to see why. Its economy, like India’s and China’s experienced a downturn due to the risk taking actions of banks based in the United States[5]. Of course, the slump can be attributed to the fact that Russia is a commodity driven economy and its economic health is pinned to the price of ...
... warming relations can be key in diminishing Russia’s exposure to the dollar[2]. China after all, is the worlds 2nd largest economy, and it has its own concerns about the weakening strength of the dollar. By this closer association, Russia and China would hypothetically be able to conduct their transactions in Yuan, completely bypassing the need for using the US dollar. However, such a transition from dollar to Yuan will take a painstakingly long time. Central banks would have to slowly replace their foreign reserves with Yuan instead of dollars, a bottom up process that would require small and medium enterprises ...
... scrutiny by emerging market economies that are worried about the safety of their fragile markets. Spearheading this movement is The Peoples Republic of China, which has been expressing its concerns about the stability of the Bretton woods system and the US Dollar[1]. China has valid reason to voice these concerns. Since the early 2000’s, with high military spending and low taxes, the US Dollar has experienced a steady decline in value[2]. This has led investors and foreign governments alike to scramble and find ...
