Russia Openly Talks with Chinese About Attack On US Dollar
Kremlin's top diplomat wants China to drop the American dollar from the majority of the transactions.
Russian Foreign Minister Sergei Lavrov began a visit to China on Monday with a call for Moscow and Beijing to reduce their dependence on the U.S. dollar and Western payment systems to decrease influence of foreign sanctions. He wants Communist China to decrease the transaction volume in dollar.
But it may be only one reason revealed by Mr. Lavrov while the true motive remained concealed.
Former US Treasury Secretary Hank Paulson revealed that Russia was involved in exacerbation of Global Financial Crisis 2007-2010.
Moscow's idea to attack the dollar is not new.
Here I'm not going to name the senior person, but I was meeting with someone… This person told me that the Chinese had received a message from the Russians which was, 'Hey let's join together and sell Fannie and Freddie securities on the market', revealed Mr. Paulson.
At that time the Communist China was the biggest external investor in $7.1tn securities relating to Fannie and Freddie, state-backed lenders which were in the centre of the crisis.
On Monday Kremlin informed Mr. Lavrov, on a two-day visit to China, was expected to hold talks with his Chinese counterpart at a time when both countries’ ties with the administration of U.S. President Joe Biden are badly strained.
U.S. and Chinese officials on Friday concluded what Washington called “tough and direct” talks in Alaska, while Russia’s ambassador arrived back in Moscow on Sunday for consultations after Mr. Biden said he believed Russian leader Vladimir Putin was a killer.
Beijing and Moscow needs to move away from using international payment systems controlled by the West
to make sanctions inefficient, stated Putin's top diplomat.
Russia is also braced for a new round of U.S. sanctions over what Washington says was its meddling in the 2020 U.S. presidential election, which Moscow denies.
Speaking to Chinese media before the start of his visit, Mr. Lavrov said Moscow and Beijing were compelled to develop independently of Washington in order to thwart what he said were U.S. attempts to curb their technological development.
We need to reduce sanctions risks by bolstering our technological independence, by switching to payments in our national currencies and global currencies that serve as an alternative to the dollar, Lavrov said, according to a transcript of his interview released on Monday.
We need to move away from using international payment systems controlled by the West, he added.
Such a move could put markets under stress.
Ahead of his visit, a Communist China propaganda outlet aimed for foreign audience The Global Times, suggested Mr. Lavrov’s trip was a sign of how close China-Russia coordination would offset the impact of what it called U.S. trouble making.