Our Product, Our Rules: Russia Now Demands Rubles For Grain Exports

[VicBee]

Not really. EUR, JPY, GBP, CAD, AUD - plenty of stable currencies around. Not sure if you're drunk or whatnot but people in Europe measure investments in Euros, not dollars. So that's exactly what they would be saying.

I say he was drunk.

 

[piezoe]

Russia grew it's GDP 50% this year in USD terms just by stopping using USD and converting their export to rubles

 

[SoyUnGanador]

What does demanding payment in Rubles do? I get that the buyer would have to exchange their currency for Rubles which would put upward pressure on Rubles prices, but if Russia just accepted payments in the buyer's base currency and then exchanged them into Rubles itself would that not do the same thing?

I'm sure I am missing something here LOL.

Thanks!

I was hoping someone could answer this question for real? Not like Overnight's drunken rampage LOL.

 

[kashirin]

I was hoping someone could answer this question for real? Not like Overnight's drunken rampage LOL.

Benefits are enermous

Look at USD role in the world and see what's going on
Basically it will give Russia opportunity to print ruble with impunity as foreign counterparties will have to hold reserves in ruble
At some point in not so distant future ruble might become reserve currency and be used as a benchmark for some commodities. Think petro ruble and grain ruble as other countries will start to transact between them in rubles

Just switching commodities trade into ruble will likely make Russia 3-4 economy in the world from being currently 11 th

Of course west will try to prevent it with whatever it takes sanctions and if needed whatever it takes military response as if USD reserve status ends USA hegemony ends too

 

[ids]

What stuff did you smoke? Keep dreaming.

 

[Overnight]

I was hoping someone could answer this question for real? Not like Overnight's drunken rampage LOL.

It was not a drunken rampage.

What is any other currency worth if the USD did not exist?

 

[sridhga]

US was spending monies with no gold to back it up. Up to now, US still spending without restraint as shown by Biden giving Ukraine like $54 billion in arms and financial aid so far. We also, shower other countries with hundreds of billions including, those harboring terrorists who want to kill Americans. These sanctions just has hastened the decoupling of the US dollar as reserve currency. BRICs countries are already starting not to use US dollars as reserves. Saudi Arabia, Argentina, Thailand are applying to join BRICs. As a trading bloc, the BRICs countries is a larger bloc in terms of population and consumers. US and Europe will feel the very bad economic effects of reverse sanctions that BRICs imposes. High oil prices and commodities is just the start, food shortages coming on top of that. Then, shortages of raw materials and components used in manufacturing by the US and Europe. BRICs countries will trade more and prioritize the needs of each BRIC country. Guess who gets sent to the back of the line?

I am not sure if BRICS is the real answer. BRICS is not really a trading bloc as you are suggesting. Russia and China want to make BRICS a big deal. But India does not want BRICS to become another political grouping. India wants to pursue independent foreign policy. What is the current strength of BRICS? It is a just a large population group with fast growing economies. Currently it is just in a dialogue phase without any clear agenda. The acronym BRICS was coined by Americans to refer to fast growing low/middle income economies that have high potential. But after the grouping was formed, other than China and India they have taken a hit on their economic growth. So, now tell me what does BRICS really stand for? For that matter even any potential BRICS plus? How does Saudi Arabia fit into this? If this turns out to be some kind of political group that is anti-US or anti EU, India would surely quit this group. Imagine this group without its fastest growing economy. Such a political formation would repel KSA too.

A currency based on BRICS currency basket may not be acceptable to the rest of the world. And executing transactions in that could be a nightmare although not impossible.

On a sidenote, does the world really need a benchmark currency? I don't think so.