Dollar collapse: Top Indian cement producer pays for Russian coal using Chinese yuan
Thursday, July 07, 2022
India’s largest cement maker UltraTech maneuvered its way away from using the U.S. dollar (USD) by using China’s yuan in a
$26 million Russian coal deal. This was according to an Indian customs document reviewed by
Reuters.
UltraTech Cement is bringing in 157,000 tons of coal from SUEK, one of the world’s largest integrated energy companies with mining, heat, power generating and logistics assets in Russia.
The cargo was loaded on the bulk carrier MV Mangas from Russia’s port of Vanino as per the document. It cites an invoice dated June 5
amounting to 172,652,900 yuan ($25.81 million).
Many nations relying on Russian coal and other oil commodities are trying to adjust and find ways without breaking the sanctions. The most recent coal deal with Russia could support Beijing’s efforts to internationalize the yuan currency and dispute the ruling dominance of the U.S. dollar in worldwide trade. This could also help out Russia from the effects of
over 10,000 sanctions currently imposed by the West on Moscow, its citizens and its companies.
“This move is significant. I have never heard of any Indian entity paying in yuan for international trade in the last 25 years of my career. This is basically circumventing the USD,” a Singapore-based currency trader said.
India has set up a rupee payment mechanism for trade with Russia that has not yet materialized. However, China has dealt with Russia for many years using the yuan.
“If the rupee-yuan-ruble route turns out to be favorable, the businesses have every reason and incentive to switch over. This is likely to happen more,” said Subash Chandra Garg, a former economic affairs secretary at India’s finance ministry.
According to a recent report from
Reuters, India’s energy imports from Russia have spiked in recent weeks because of traders’ steep discount offers.
Russian coal traders’ business units in Dubai have become the active facilitators of deals with India. Singapore has reportedly backed off in fear of provoking western nations that invoked
sanctions against Russia.
A Russian coal trader based in Dubai said the biggest challenge was sending rubles to Russia. “You can either take payments in yuan in Dubai or receive it in dollars or (Arab Emirates) dirham and convert it to ruble,” he said, adding it was easier to convert the yuan to ruble and was preferred over other currencies.
Collapse of U.S. dollar reserve is imminent
Last month, Russian President Vladimir Putin announced that the BRICS nations (Brazil, Russia, India, China, and South Africa) are working on setting up a new and
reliable alternative mechanism for international payments.
“The issue of creating an international reserve currency based on a basket of currencies of our countries is being worked out,” Putin said during the BRICS economic and business forum.
These emerging economic nations are boosting the use of local currencies in mutual trade. The current coal purchase using the yuan could be one of the initial actions in promoting the use of another legal tender other than the petrodollar. (Related:
COUNTDOWN to collapse of the petrodollar… America’s dollar dominance is coming to a sudden, catastrophic end… total CHAOS will follow.)
Andy Schectman, owner and CEO of Miles Franklin Ltd. Precious Metals, in his appearance in “Brighteon Conversations” with the Health Ranger Mike Adams, said the collapse of the U.S. dollar reserve is imminent.
“The BRICS nations are all coalescing and the digital yuan has already done 10 billion in transactions,” he said.
When the dollar collapses, he said, the Great Reset will begin. “There’s your [World Economic Forum founder] Klaus Schwab saying you’ll own nothing and be happy. Because everything that is of any value in this country [U.S.], the four pillars of wealth – dollars, stocks, bonds, real estate – will collapse in one swift moment,” he stated.
It is bound to happen because of the weaponization of the dollar as the world reserve currency. “America cannot tell the world who can and can’t use it by pushing Russia right into the open arms of China and its CIP [cross interbank payment] system,” Schectman explained.
He went on to say that 90 percent of the world has had to own dollars to buy oil. “Now, you have all of the world dumping dollars. And if you think inflation is bad, wait until all those dollars come flooding home creating massive hyperinflation,” he said.