Ukraine Update June 14

RuBanks Down, RuStocks Down, Monkeys with Grenades

Rubanks Down

Russia has de-dollarized, and the yuan will now be the main trading currency for Russian citizens. China’s takeover is nearing completion. Russian banks are refusing to issue dollars, and the lines, both virtual and physical, are growing.

The ruble-dollar exchange rate is now meaningless, frozen officially at 88.xx. If a currency can’t be easily exchanged, then the black market rate becomes the official rate. Russians complain that the ruble is now “wooden,” that is, worthless. They don’t want Huawei and Shangto; they want Apple and Mercedes. They will get neither.

The reliance on the Chinese currency means that Beijing now controls the exchange rate. Russia has to sell gas and oil at whatever price China dictates and that exchange will effectively set the course of the ruble. This is bad for Russia. When it relied on the dollar, the US couldn’t dictate the exchange rate, as the trade linking RF and the US was not all that important to either country. This is the plan of BRICS, and it is working. It was never about BRICS — but briCs. China is the only partner that matters. It’s the difference between a country that structures for domination and one that strives for business. China isn’t looking for a trading partner — it’s looking for a vassal, and it has several, with Russia the crown jewel.