Russia and China may try using their natural resources to back their money
Russia and China may try using their natural resources to back their money WashTimesOpEd
China and Russia have announced they, along with Brazil, India and South Africa, are “working to develop a new global reserve currency” to compete with the U.S. dollar.
, as well as most other countries, hold the majority of their foreign reserves in USDs. Almost all global commodities, such as oil, corn, sugar, coffee, copper and aluminum, are priced and traded in USDs. This gives the U.S. a unique ability to apply financial sanctions on foreign countries, by doing such things as freezing their USD-denominated bank accounts and limiting their ability to clear trading transactions and investments. Approximately two dozen countries are under some sort of economic sanction or restriction by the U.S.
