Dollar to be dropped from National Wealth Fund structure within one month, says minister

[rent4country]

Russian action alone will not have a material impact on dollar value.
What is however troubling and is likely to impact dollar value is the overlapping of a number of things:
1) Russia and China both reducing their dollar holds
2) China reducing drastically its purchase of US Bonds
3) General cooling of foreign US bond purchase forcing the Fed buying its own issuance in order to maintain its price equilibrium
4) Liquidity pump in dollars within the US market
5) Portion of world trade moving away from US Dollar (likely 15% in the next 5 years)

You take all of these together an we are likely to see dollar inflationary pressure. Having said that Dollar will remain on a global level one of the stronger currencies but will loose its shine. A second major wave of CoVid or a failed rebound in the economy and we could see a significant issue.

• Russian is not much of an economy to affect the dollar.
• For China, we have substitutes in many emerging economies. The developed economies will never bet on China's yuan. Even so, china may capture less than a 3rd of the market, the rest will always bet on the dollar.
• Even today Japan & Aus trade in yuan only on their bi-bilateral trade agreements. they continue to use dollars for everything else.

Now, about these BONDS they won't be purchasing. Let me tell you a little secret. Countries buy our bonds fully knowing that at MATURITY, the value of the money put in, will be at a loss given the low percentage of interest and taking inflation into account. i.e. Countries while knowing fully well that buying US bonds will not mean a financial ROI, still buy our US bonds. Guess why? - stability, politics, transparency, and dollar history

btw, China only holds less than a trillion of US treasury bonds, they seem to have been on a buying spree for Japanese bonds since last year.

 

[rent4country]

China urges U.S. to withdraw investment ban


China said on Friday that it strongly condemned U.S. President Joe Biden's signing of an order to ban investment in dozens of Chinese defense and tech firms.

China urged the United States to respect market law and principle and withdraw the investment ban list, foreign ministry spokesman Wang Wenbin told a regular news briefing.

Biden signed an executive order on Thursday that bans U.S. entities from investing in dozens of Chinese companies with alleged ties to defense or surveillance technology sectors, a move his administration says expands the scope of a legally flawed Trump-era order. read more

China urges U.S. to withdraw investment ban

China said on Friday that it strongly condemned U.S. President Joe Biden's signing of an order to ban investment in dozens of Chinese defense and tech firms.

www.reuters.com

 

[Hamartia Antidote]

I will gladly accept donations of such worthless toilet paper, please.

Geez every year Iran and Russia talk about dumping dollars. Then the next year they announce it again...then the next year again...then the next year again.

Just do it damnit and shutup...

 

[VCheng]

Geez every year Iran and Russia talk about dumping dollars. Then the next year they announce it again...then the next year again...then the next year again.

Just do it damnit and shutup...

Next Tuesday. It is always going to happen by NEXT Tuesday.

In reality, the USD keeps on chugging along as the world's reserve currency backed by global faith in USA, dissenting words to the contrary notwithstanding, but supported by actual actions.

 

[Titanium100]

Dollar to be dropped from National Wealth Fund structure within one month, says minister

SPIEF - 2021
3 Jun, 12:24Updated at: 13:27

Russian Finance Ministry has decided to reduce the funds of the NWF invested in dollar assets and replace them by an increase in the euro and gold

View attachment 750275
Russian Finance Minister Anton Siluanov
© Anton Novoderezhkin/TASS


ST. PETERSBURG, June 3. /TASS/. Russia plans to fully abandon the US greenback in the structure of the National Wealth Fund (NWF) and reduce the share of the British pound within a month, Finance Minister Anton Siluanov revealed on the sidelines of the St. Petersburg International Economic Forum on Thursday, adding that the share of euro and yuan will rise, gold will be added, but the portfolio of Japanese yen will remain unchanged in the NWF.
"We, just like the Central Bank, have decided to reduce the funds of the NWF invested in dollar assets. Today’s structure has around 35% of the NWF’s funds invested in dollars. We have decided to fully withdraw from dollar assets, replacing investments in dollars by an increase in the euro, in gold," he said, adding that the shift to a new structure of the NWF is expected within a month.
"[Investments] in dollars will equal 0%; in euro they’ll come to 40%; in yuan they’ll amount to 30%; in gold - 20%; and in pounds and yuan - 5% each. We have substituted dollars with an increase of 5% in euro, gold and yuan," the finance chief explained.
"The Central Bank is the operator (regarding gold purchases - TASS). It operates its gold and currency reserves and defines the structure of its assets for the National Wealth Fund and the share of the National Wealth Fund in those assets itself," he said.

Currently, the share of the greenback and the EU’s currency in the NWF stands at 35%, with the yuan’s share at 15%, the sterling pound at 10%, and the yen at 5%.

https://tass.com/economy/1297717

US dollar is going to be worth less than a toilet paper.

Ah.. No wonder why the US seemed aggressive lately.. Did Russia go thru with this

 

[Piotr]

Ah.. No wonder why the US seemed aggressive lately..

A drowning man catches at a straw - that's why US Empire is so aggressive.

 

[Piotr]

Did Russia go thru with this

They did it.

Russia's National Welfare Fund Ditches US Dollar, Finance Ministry Says
16:50 GMT 06.07.2021

MOSCOW (Sputnik) - The Russian Finance Ministry said on Tuesday it had finally brought the share of US dollar in the National Wealth Fund (NWF) to zero, and of the British pound to 5%, increasing euro and yuan shares to 39.7% and 30.4%, respectively.

The Russian Finance Ministry reports the completion on 5 July 2021, of the conversion operations necessary to bring the actual structure of the NWF funds to the new regulatory structure", the statement says.

As a result of these operations, the US dollar was excluded from the structure of the NWF funds, while the share of the pound sterling was reduced to 5.0%.



The share of the euro and the Chinese yuan increased to 39.7% and to 30.4%, respectively, whereas the share of the Japanese yen was 4.7%, and the share of non-cash gold 20.2%


In June 2021, the NWF decreased by 363 billion rubles to 13.575 trillion rubles, and in dollars — by $1.8 billion to $187.6 billion, the ministry said.

https://sputniknews.com/russia/2021...fund-ditches-us-dollar-finance-ministry-says/

 

[Beidou2020]

They did it.

Russia's National Welfare Fund Ditches US Dollar, Finance Ministry Says
16:50 GMT 06.07.2021

MOSCOW (Sputnik) - The Russian Finance Ministry said on Tuesday it had finally brought the share of US dollar in the National Wealth Fund (NWF) to zero, and of the British pound to 5%, increasing euro and yuan shares to 39.7% and 30.4%, respectively.

The Russian Finance Ministry reports the completion on 5 July 2021, of the conversion operations necessary to bring the actual structure of the NWF funds to the new regulatory structure", the statement says.

As a result of these operations, the US dollar was excluded from the structure of the NWF funds, while the share of the pound sterling was reduced to 5.0%.



The share of the euro and the Chinese yuan increased to 39.7% and to 30.4%, respectively, whereas the share of the Japanese yen was 4.7%, and the share of non-cash gold 20.2%


In June 2021, the NWF decreased by 363 billion rubles to 13.575 trillion rubles, and in dollars — by $1.8 billion to $187.6 billion, the ministry said.

https://sputniknews.com/russia/2021...fund-ditches-us-dollar-finance-ministry-says/

Congralutions on getting rid of that toilet paper masquerading as a currency.