As a result, a number of countries are considering a shift away from the dollar to preserve their assets.

Countries are growing weary of losing money on the falling dollar. Many of them want to protect their financial interests, and a number of them want to end the US oversight that comes with using the dollar. Obviously, an abandonment of the dollar is bad news for the currency.

China’s Attack On The Dollar | Real Jew News

Simply put, as demand lessens, its value drops. Losing this status could rock the financial lives of both Americans and the worldwide economy.

Moscow And Beijing Join Forces To Bypass US Dollar In Global Markets, Shift To Gold Trade | Zero Hedge

We respect your email privacy. Please note that Forex trading involves substantial risk of loss, and may not be suitable for everyone. The Telegraph reports that for the first time, Saudi Arabia has refused to cut interest rates along with the US Federal Reserve.

This is seen as a signal that a break from the dollar currency peg is imminent. The kingdom is taking "appropriate measures" to protect itself from letting the dollar cause problems for their own economy. InKorea announced its intention to shift its investments to currencies of countries other than the US.

After already dropping the dollar peg inChina has more trouble up its sleeve.

Currently, China is threatening a "nuclear option" of huge dollar liquidation in response to possible trade sanctions intended to force a yuan revaluation. Venezuela holds little loyalty to the dollar. These barter deals, established under Hugo Chavez, allow Venezuela to trade oil with 12 Latin American countries and Cuba without using the dollar, shorting the US its usual us dollar reserves in china. Chavez is not shy about this decision, and has publicly encouraged others to adopt similar arrangements.

InChavez recommended to OPEC that they "take advantage of high-tech electronic barter and bi-lateral exchanges of its oil with its how chinese millionaires make their money country customers," or in other words, stop using the dollar, or even the euro, for oil transactions.

Sudan is, once again, planning to convert its dollar holdings to the euro and other currencies. Inthe Central Bank of Sudan made a similar recommendation in reaction to US sactions from former President Clinton, but the implementation failed.

This time around, 31 Sudanese companies have become subject to sanctions, preventing them from doing trade or financial transactions with the US.

Officially, the sanctions are reported to have little effect, but there are indications that the economy is suffering due to these restrictions. A decision to move Sudan away from the dollar is intended to allow the country to work around these sanctions as well as any implemented in the future. However, a Khartoum committee recently concluded that proposals for a reduced dependence on the dollar are "not feasible.

Iran is perhaps the most likely candidate for an imminent abandonment of the dollar. Recently, Iran requested that its shipments to Japan be traded for yen instead of dollars.

China’s forex reserves up surprisingly to US$3 trillion as curbs on capital outflows bite | South China Morning Post

Further, Iran has plans in the works to create an open commodity exchange called the Iran Oil Bourse. This exchange would make it possible to trade oil and gas in non-dollar currencies, the euro in particular. Iran is not alone in its desire to establish an alternative to trading oil and other commodities in dollars. InRussian President Vladmir Putin expressed interest in establishing a Russian stock exchange which would allow "oil, gas, and other goods to be paid for in Roubles.

What does this all mean?

This entry was written by adminposted on November 6, at Follow any comments here with the RSS feed for this post. Both comments and trackbacks are currently closed. Thoughts from 12 Experts.