Economic News

Belarus becomes next country bent on ditching the dollar as they seek bi-lateral trade agreements with Russia

It is not just the Middle Eastern oil producers who are moving away from the dollar in international trade as on June 13, the nation of Belarus announced plans to ditch the dollar in favor of direct bi-lateral trade.

Belarus is one of five members that make up the Eurasian Economic Union, which seeks like their counterpart coalition in Asia to move towards direct bi-lateral trade outside of the global reserve currency.

The Belarusian Prime Minister, Andrey Kobyakov, has called for a complete shift away from the US dollar towards national currencies in Russia-Belarus trade and price-setting. 

“That would be great if the entire trade turnover, as well as price-formation were set in national currencies,” Kobyakov said during the session of the Council of Ministers of the Union State of Russia and Belarus. 

Kobyakov also said that increasing trade turnover to $40 billion should be set as a strategic task for the neighboring states. 

“Positive trends towards the restoration of economic growth in our countries were secured in 2017 and have been reflected in results of bilateral trade. In 2017 Belarus-Russia trade rose by 23.5 percent to $32.4 billion,” he said. – Russia Today

Direct bi-lateral trade is the most powerful way to evade economic sanctions imposed by the United States since the only real teeth those sanctions have is in their ability to cut off a nation from SWIFT and from their being able to buy dollars for use in global trade.  And this is already being seen in Iran where the oil producer simply sells their oil to Russia outside the dollar and where Russia then subsequently sells that oil under their own banner.

Source: thedailyeconomist.com

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