Russia, China Enter Bank Deal Leaving the Dollar Behind

Russia, China Enter Bank Deal Leaving the Dollar Behind

On May 20 Russia’s second-largest financial institution, VTB, and the Bank of China signed an Agreement on Cooperation so they could “bypass the dollar and pay each other in domestic currencies.”

This was followed by a May 21 announcement of “a mass natural gas deal” that has been in the works for ten years.

According to Al Jazeera America, Russian President Vladimir Putin addressed the financial agreement by saying, “Our countries have done a huge job to reach a new historic landmark.”

“BRICS countries” – Brazil, Russia, India, China, and South Africa – have been looking for a way to lessen the U.S. dollar’s domination of the world market: “China sees the dominance of the dollar in international trade transactions as a remnant of American global dominance, which they hope to overthrow in the years ahead.”

Moscow-based Macro-Advisory’s Chris Weafer said, “Breaking the dominance of the U.S. dollar in international trade between BRICS is something that the group has been talking about for some time.”

Follow AWR Hawkins on Twitter @AWRHawkins. Reach him directly at