Underneath the surface of this deal. According to Alexei Miller, CEO of Russia’s Gazprom, the deal with China National Petroleum Corporation (CNPC) is worth an estimated US$400 billion and will be paid in RMB and rubles instead of U.S. dollars. By etching the deal in RMB and rubles instead of U.S. dollars, China and Russia hope to diminish their dependence on the dollar and shift to a new international reserve currency such as the RMB or basket of BRIC currencies. Beijing aims to make the RMB fully convertible by 2018, and the BRICS plan to open their own development bank by 2015 to rival the IMF and World Bank as a source of international development funding and currency volatility management. The BRICS countries are: Brazil, Russia, India, China and South Africa.
Posted on: Wed, 04 Jun 2014 15:10:38 +0000
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