Who's Isolated Now? Kazakhstan Authorities Announce Plans To De-Dollarize Economy | Zero Hedge

Following the approval of the government, Kazakhstan's Central Bank has announced it plans to de-dollarize its economy by the end of 2016. The goal is to avoid the macroeconomic instability that the USD creates and to give priority to Tenge in trade agreements (banning price designations in foreign exchange). Coming just 2 weeks after the ratification of the $100 billion BRICS bank, and Russia's creation of a SWIFT-alternative, one wonders - as one by one foreign nations agree non-dollar trade and swap agreements - who is becoming 'isolated' now?

The Tenge is at record lows against the USD...






Full Kazakhstan Central Bank Statement (via Google Translate):

On measures to reduce dollarization of the economy

March 4, 2015 in Almaty

National Bank jointly with the Government to develop a plan to reduce the level of dollarization of the economy of Kazakhstan for 2015 - 2016 years, which was approved at a meeting of the Government of February 17, 2015. In addition, the plan approved at the meeting of the Board of the National Bank February 25, 2015.

The plan includes three main strategic directions:
Ensuring macroeconomic stability;
The development of non-cash payments and reduce the shadow turnover;
Priority over foreign currency.
In the first direction in the plan includes measures to diversify the economy and increase the local content in goods, works and services.

The second area includes measures for the development of non-cash payments.

In the third direction is provided to increase the size guarantee on deposits in the national currency with 5 million. Tenge to 10 million. Tenge, reducing interest rates on deposits in foreign currency up to 3% annual, providing liquidity to banks and recovery of the banking sector, a ban designation on prices in foreign currency (including in arbitrary units).

Reducing the level of dollarization of the economy is a long process, whose progress is possible with constant and systematic work with a set of interrelated measures and joint efforts not only of the Government and the National Bank, but also of all economic actors.

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Complete story at - Who's Isolated Now? Kazakhstan Authorities Announce Plans To De-Dollarize Economy | Zero Hedge

The Global De-dollarization and the US Policies | New Eastern Outlook

In its quest for world domination, which the White House has been pursuing for more than a century, it relied on two primary tools: the US dollar and military might. In order to prevent Washington from establishing complete global hegemony, certain countries have recently been revising their positions towards these two elements by developing alternative military alliances and by breaking with their dependence on the US dollar.

Until the mid-twentieth century, the gold standard was the dominant monetary system, based on a fixed quantity of gold reserves stocked in national banks, which limited lending. At that time, the United States managed to become the owner of 70% of world’s gold reserves (excluding the USSR), therefore it pushed its weakened competitor, the UK, aside resulting to the creation of the Bretton Woods financial system in 1944. That’s how the US dollar became the predominant currency for international payments.

But a quarter century later this system had proven ineffective due to its inability to contain the economic growth of Germany and Japan, along with the reluctance of the US to adjust its economic policies to maintain the dollar-gold balance. At that time, the dollar experienced a dramatic decline but it was saved by the support of rich oil exporters, especially once Saudi Arabia began to exchange its black gold for US weapons and support in talks with Richard Nixon. As a result, President Richard Nixon in 1971 unilaterally ordered the cancellation of the direct convertibility of the United States dollar to gold, and instead he established the Jamaican currency system in which oil has become the foundation of the US dollar system. Therefore, it’s no coincidence that from that moment on the control over oil trade has become the number one priority of Washington’s foreign policy. In the aftermath of the so-called Nixon Shock the number of US military engagements in the Middle East and other oil producing regions saw a sharp increase. Once this system was supported by OPEC members, the global demand for US petrodollars hit an all time high. Petrodollars became the basis for America domination over the global financial system which resulted in countries being forced to buy dollars in order to get oil on the international market.

Analysts believe that the share of the United States in today’s world gross domestic product shouldn’t exceed 22%. However, 80% of international payments are made with US dollars. As a result, the value of the US dollar is exceedingly high in comparison with other currencies, that’s why consumers in the United States receive imported goods at extremely low prices. It provides the United States with significant financial profit, while high demand for dollars in the world allows the US government to refinance its debt at very low interest rates.

Under these circumstances, those hedging against the dollar are considered a direct threat to US economic hegemony and the high living standards of its citizens, and therefore political and business circles in Washington attempt by all means to resist this process.This resistance manifested itself in the overthrow and the brutal murder of Libyan leader Muammar Gaddafi, who decided to switch to Euros for oil payments, before introducing a gold dinar to replace the European currency.

Complete story at - The Global De-dollarization and the US Policies | New Eastern Outlook

90% Of Gazprom Clients Have "De-Dollarized", Will Transact In Euro & Renminbi | Zero Hedge

Following Obama and Putin's "caught on tape" meeting Vine'd by the French President, we can't help but wonder if the Russian leaders comments were something akin to "this is not over yet." With "De-Dollarization" efforts already broadly under discussion, ITAR-TASS reports that Gazprom had signed additional agreements for clients to switch from dollars to euros and renminbi, "nine of ten consumer had agreed to switch."

Via ITAR-TASS,

Gazprom Neft had signed additional agreements with consumers on a possible switch from dollars to euros for payments under contracts, the oil company's head Alexander Dyukov told a press conference.

"Additional agreements of Gazprom Neft on the possibility to switch contracts from dollars to euros are signed. With Belarus, payments in roubles are agreed on," he said.

Dyukov said nine of ten consumers had agreed to switch to euros.

ITAR-TASS reported earlier that Gazprom Neft considered the possibility to make payments in roubles under contracts. Some contracting parties agree to switch from dollars to euros and Yuans.

"The so-called Plan B is already partially worked out. The switch of dollar contracts to euros and Yuans is agreed on with some of our contracting parties. Under consideration is the possibility to switch contracts to roubles," Dyukov said at the St. Petersburg International Economic Forum.

As we concluded previously,

And as we have explained repeatedly in the past, the further the west antagonizes Russia, and the more economic sanctions it lobs at it, the more Russia will be forced away from a USD-denominated trading system and into one which faces China and India.

Complete story at - 90% Of Gazprom Clients Have "De-Dollarized", Will Transact In Euro & Renminbi | Zero Hedge