{"id":1716623,"date":"2022-10-30T06:07:07","date_gmt":"2022-10-30T10:07:07","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1716623"},"modified":"2022-10-30T06:48:45","modified_gmt":"2022-10-30T10:48:45","slug":"russia-and-china-may-be-working-toward-new-gold-backed-currency","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/russia-and-china-may-be-working-toward-new-gold-backed-currency\/","title":{"rendered":"Russia and China May Be Working Toward New Gold-Backed Currency"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">20<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Frussia-and-china-may-be-working-toward-new-gold-backed-currency%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1716623&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47-->\n<div class=\"featured featured-video video-ct\">\n<div class=\"contain\">\n<div class=\"info\">\n<div class=\"caption\">\n<p>Bitcoin Foundation Chairman Brock Pierce discusses the cryptocurrency market, its influence on politics, and provides an outlook of the market on &#8216;Cavuto: Coast to Coast.&#8217;<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<p>China and Russia may be working toward a new gold-backed currency in a move that would aim to dethrone the dollar as the primary reserve currency of the world, but any such currency would unlikely achieve that goal.\u00a0<\/p>\n<p>&#8220;The <a href=\"https:\/\/www.foxbusiness.com\/money\/strong-us-dollar-can-affect-everyone\" target=\"_blank\" rel=\"noopener\">USD remains the safest, most convenient <\/a>and most widely used currency in Asia and in the world today,&#8221; Min-Hua Chiang, a research fellow and economist at the Heritage Foundation\u2019s Asian Studies Center, told FOX Business. &#8220;No other currency (backed by gold or otherwise) is comparable, and that is unlikely to change in the near future.&#8221;<\/p>\n<p>Neither country has officially confirmed plans for such a currency, but China earlier this year started to buy up huge quantities of gold at the same time that Russia was forced off the dollar due to sanctions in response to the invasion of Ukraine. The war also led to the <a href=\"https:\/\/www.foxbusiness.com\/markets\/gold-3-14-22\" target=\"_blank\" rel=\"noopener\">steepest discount on gold prices<\/a> in years.\u00a0<\/p>\n<p>Some experts caution that these moves, along with the closer relationship that has developed between Moscow and Beijing as the rest of the world has isolated Russia after the invasion, point to the likelihood of China attempting to launch a new currency with gold backing it.\u00a0<\/p>\n<p><a href=\"https:\/\/www.foxbusiness.com\/economy\/strongest-us-dollar-years-double-edged-sword\" target=\"_blank\" rel=\"noopener\"><strong>THE STRONGEST US DOLLAR IN 20 YEARS IS A DOUBLE-EDGED SWORD<\/strong><\/a><\/p>\n<p>The idea of a joint Russo-Sino currency has periodically surfaced over the past decade, especially after the Russian Central Bank opened its first overseas office in Beijing in 2017.\u00a0<\/p>\n<div class=\"inline image-ct\">\n<div class=\"m\"><source media=\"(max-width: 767px)\" \/><source media=\"(min-width: 768px) and (max-width: 1023px)\" \/><source media=\"(min-width: 1024px) and (max-width: 1279px)\" \/><source media=\"(min-width: 1280px)\" \/><img decoding=\"async\" src=\"https:\/\/a57.foxnews.com\/static.foxbusiness.com\/foxbusiness.com\/content\/uploads\/2022\/02\/931\/523\/PUTIN-XI-JINPING-FEB-2022.jpg?ve=1&#038;tl=1\" alt=\"Xi Jinping Putin\" \/><\/div>\n<div class=\"caption\">\n<p><span>Russia&#8217;s President Vladimir Putin (L) and his Chinese counterpart Xi Jinping pose during a meeting.<\/span><span> (Alexei DruzhininTASS via Getty Images \/ Getty Images)<\/span><\/p>\n<\/div>\n<\/div>\n<p>Craig Singleton, Senior Fellow at the Foundation for Defense of Democracies, noted that Chinese leaders have spoken for two decades about <a href=\"https:\/\/www.foxbusiness.com\/markets\/peter-schiff-china-russia-buying-gold-because-they-can-read-the-writing-on-the-wall\" target=\"_blank\" rel=\"noopener\">reforming the global financial system<\/a> and weakening the dollar\u2019s dominance.\u00a0<\/p>\n<p>&#8220;Two components in that strategy center around the development of a Yuan-based global commodities trading system and efforts by China, <a href=\"https:\/\/www.foxbusiness.com\/politics\/china-russia-alliance-long-time-making-will-allow-them-counter-west-expert\" target=\"_blank\" rel=\"noopener\">in partnership with Russia<\/a> and other like-minded countries, to challenge dollar dominance by creating a new reserve currency,&#8221; Singleton told Fox News Digital.\u00a0<\/p>\n<p><a href=\"https:\/\/www.foxbusiness.com\/markets\/crypto-broker-nydig-cuts-one-third-of-staff-in-new-focus\" target=\"_blank\" rel=\"noopener\"><strong>CRYPTO BROKER NYDIG CUTS ONE-THIRD OF STAFF IN NEW FOCUS<\/strong><\/a><\/p>\n<p>&#8220;In essence, Beijing and Moscow are seeking to build their own sphere of influence and a unit of currency within that sphere, in effect inoculating themselves from the threat of U.S. sanctions,&#8221; he added.\u00a0<\/p>\n<p>But the record amount of gold that China has purchased has raised some eyebrows, even as the trend remains under the radar for mainstream media: Swiss gold exports to China hit a five-year high, with Beijing in July alone receiving 80.1 tons of gold valued at around $4.6 billion \u2013 more than double the 32.5 tons it bought in June and the second-highest monthly total since 2012, according to Reuters.\u00a0<\/p>\n<div class=\"inline image-ct\">\n<div class=\"m\"><source media=\"(max-width: 767px)\" \/><source media=\"(min-width: 768px) and (max-width: 1023px)\" \/><source media=\"(min-width: 1024px) and (max-width: 1279px)\" \/><source media=\"(min-width: 1280px)\" \/><img decoding=\"async\" src=\"https:\/\/a57.foxnews.com\/static.foxbusiness.com\/foxbusiness.com\/content\/uploads\/2022\/03\/931\/523\/gold-bars-gold-commodities-3-8-22.jpg?ve=1&#038;tl=1\" alt=\"Gold bars\" \/><\/div>\n<div class=\"caption\">\n<p><span>Inflation drives gold demand. REUTERS\/Mike Segar (UNITED STATES)<\/span><span> (REUTERS\/Mike Segar (UNITED STATES) \/ Reuters Photos)<\/span><\/p>\n<\/div>\n<\/div>\n<p>International Financial Statistics from March 2022 indicated that China may have the seventh-most gold stores, with more coming every month.\u00a0<\/p>\n<p>Francis Hunt, a trading expert, told Asia Markets that using gold to back the currency would be the best way to build confidence in said currency, and <a href=\"https:\/\/www.foxbusiness.com\/category\/cryptocurrency\" target=\"_blank\" rel=\"noopener\">that currency may be digital<\/a> in nature to give China a greater scrutiny over its citizens\u2019 activity.\u00a0<\/p>\n<p><a href=\"https:\/\/www.foxbusiness.com\/features\/calendar-former-official-provides-insight-sec-regulatory-intent-satoshi-stumble\" target=\"_blank\" rel=\"noopener\"><strong>CALENDAR OF FORMER OFFICIAL PROVIDES INSIGHT INTO SEC REGULATORY INTENT, SATOSHI STUMBLE<\/strong><\/a><\/p>\n<p>But Chiang downplayed the potential success of a new currency due to the &#8220;relatively small trade volume&#8221; that would limit its growth, and that a digital currency would prove difficult to promote.\u00a0<\/p>\n<p>&#8220;Even if both countries use a new currency for bilateral trade transactions, the relatively small trade volume between will limit the impact on the U.S. dollar,&#8221; Chiang argued, noting that a multinational currency, like the Euro, requires &#8220;a level of political and economic coordination and integration that is not present in Asia today.&#8221;<\/p>\n<table class=\"stock-fundamentals\">\n<thead>\n<tr>\n<th class=\"ticker\">Ticker<\/th>\n<th class=\"security\">Security<\/th>\n<th class=\"last\">Last<\/th>\n<th class=\"change\">Change<\/th>\n<th class=\"percent\">Change %<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td class=\"ticker\"><a href=\"https:\/\/www.foxbusiness.com\/quote?stockTicker=GC\">GC<\/a><\/td>\n<td class=\"security\">n.a.<\/td>\n<td class=\"last\">n.a.<\/td>\n<td class=\"change neg\">n.a.<\/td>\n<td class=\"percent neg\">n.a.<\/td>\n<\/tr>\n<tr>\n<td class=\"ticker\"><a href=\"https:\/\/www.foxbusiness.com\/quote?stockTicker=SI\">SI<\/a><\/td>\n<td class=\"security\">SILVERGATE CAPITAL<\/td>\n<td class=\"last\">58.84<\/td>\n<td class=\"change pos\">+1.65<\/td>\n<td class=\"percent pos\">+2.89%<\/td>\n<\/tr>\n<tr>\n<td class=\"ticker\"><a href=\"https:\/\/www.foxbusiness.com\/quote?stockTicker=DXY\">DXY<\/a><\/td>\n<td class=\"security\">n.a.<\/td>\n<td class=\"last\">n.a.<\/td>\n<td class=\"change neg\">n.a.<\/td>\n<td class=\"percent neg\">n.a.<\/td>\n<\/tr>\n<tr>\n<td class=\"ticker\"><a href=\"https:\/\/www.foxbusiness.com\/quote?stockTicker=CNY\">CNY<\/a><\/td>\n<td class=\"security\">n.a.<\/td>\n<td class=\"last\">n.a.<\/td>\n<td class=\"change neg\">n.a.<\/td>\n<td class=\"percent neg\">n.a.<\/td>\n<\/tr>\n<tr><\/tr>\n<\/tbody>\n<\/table>\n<p>&#8220;The appeal will be limited,&#8221; Chiang said. &#8220;Consider that in August 2022, 43% of global payments were conducted in USD, followed by 34% in Euro. RMB accounted for just 2% of total global payments according to RMB Tracker.&#8221;<\/p>\n<p><a href=\"http:\/\/foxbusiness.com\/\" target=\"_blank\" rel=\"noopener\"><strong><u>CLICK HERE TO READ MORE ON FOX BUSINESS<\/u><\/strong><\/a><\/p>\n<p>&#8220;The RMB is gaining some ground, but it is still leagues behind the USD and Euro,&#8221; she concluded, adding that &#8220;foreigners\u2019 confidence towards China\u2019s and Russia\u2019s economic prospects (or lack thereof) is a key limitation&#8221; to any potential joint currency.\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Bitcoin Foundation Chairman Brock Pierce discusses the cryptocurrency market, its influence on politics, and provides an outlook of the market on &#8216;Cavuto: Coast to Coast.&#8217; China and<\/p>\n","protected":false},"author":1,"featured_media":1716626,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[547],"tags":[],"class_list":["post-1716623","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-bongino-report"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1716623","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1716623"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1716623\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1716626"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1716623"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1716623"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1716623"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}