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FACTDROP: Russia may pull another. country away from dollar as talks with Egypt progress


Russia may pull another. country away from dollar as talks with Egypt progress

Πηγή: The Examiner
Feb 8 2015

On Feb. 8, Russian President Vladimir Putin spoke about his upcoming trip toEgypt, and his plans to introduce new bi-lateral trade agreements which will allow the Middle Eastern country to facilitate trade in Eurasia using a currency that is outside of the dollar.

Egypt is one of the nearly 30 countries that already have currency swap lineswith China and the Chinese Yuan, and adding Russia and to the mix for bi-lateral trade will be a major boon for the ever-growing Eurasian Economic Zone that is allowing nations to divest themselves of U.
S. dollar hegemony and protect their economies from exported inflation.

Additionally, Egypt is fully aware of what exported inflation from holding dollars can do to their country. Back in 2009, Egypt was part of the Arab Spring uprising that spawned out of the people's inability to purchase food stuffs on the open market because commodity prices were too high due to speculation and a strong dollar.

(Russia and Egypt might soon exclude the US dollar and use their national currencies in the settlement of accounts in bilateral trade, Russian President Vladimir Putin said in an interview to Egyptian media ahead of his Monday visit to the country.

The issue of abandoning the dollar in trade is “being actively discussed,” Putin told Al-Ahram daily newspaper ahead of his two-day trip to Egypt. The Russian president was invited for a bilateral meeting by his Egyptian counterpart Abdul Fattah al-Sisi.

“This measure will open up new prospects for trade and investment cooperation between our countries, reduce its dependence on the current trends in the world markets,” Putin said). - Russia Today

Besides the possibility of a new bi-lateral trade agreement with Egypt, Russia has recently signed new trade agreements with Iran that will facilitate direct trade between the two countries outside the dollar.

Over the past year, fewer and fewer transactions have taken place globally using the dollar and recognized reserve currency. And with the death of the petro-dollar agreement nearly complete as oil producing nations no longer require dollars to buy energy from their distribution markets, the need for the U.S. currency will continue to wane, and along with that decline will be the corporate alliances that nations like Egypt have with Washington as they seek better opportunities using their own currency in trade outside of the status quo.

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