Should You Be Scared That China And Russia Just Agreed To Drop The Dollar?

vladimirputin wink tbi

China and Russia have announced that they will no longer use the dollar for bi-lateral trade. Instead they will use either the ruble or the yuan.

Should you be scared? Is this the end of the dollar? Meh, not really. This is what everyone wants to see happen; we want the yuan to become a real currency used in trade, just like many other countries currencies are.

It’s not the end of the world if the dollar isn’t the world’s sole reserve currency. It certainly hasn’t been bad for the yen, or the Singapore dollar, or the Swiss Franc — all widely respected and used global currencies — that aren’t THE RESERVE CURRENCY. There’s plenty of stuff to freak out about. This is not one of those things.

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.