Eastern Europe Joins Russia’s 100% Gold-Backed Currency

Eastern Europe joins Russia in creating 100% gold-backed currency

Belarus has become the first Eastern European country to ditch the US dollar and join forces with Russia and China in using a 100 percent gold-backed currency system. 

The Belarusian Prime Minister, Andrey Kobyakov, announced the shift away from the US dollar during a session of the Council of Ministers of the Union State of Russia and Belarus.

“That would be great if the entire trade turnover, as well as price-formation were set in national currencies,” Kobyakov said.

Earlier this year, Russia and China announced plans to create a gold-backed currency system to replace the US dollar in an effort to thwart US/Western currency supremacy.

Rt.com reports: Kobyakov also said that increasing trade turnover to $40 billion should be set as a strategic task for the neighboring states.

“Positive trends towards the restoration of economic growth in our countries were secured in 2017 and have been reflected in results of bilateral trade. In 2017 Belarus-Russia trade rose by 23.5 percent to $32.4 billion,” he said.

Russia’s Prime Minister, Dmitry Medvedev, noted that substantial proportion of mutual settlements between the countries is currently carried out in Russia’s national currency.

“Last year, the parties closed some 83 percent of mutual trade deals in rubles,” Medvedev said. “That reflects complete trust to Russian national currency, and, what is most important – reduces dependence on external factors.”

The Russian Prime Minister highlighted the necessity to eliminate obstacles for mutual access for goods and services, as well as to increase the share of high technology products and export-oriented goods. Medvedev also said that the countries are planning to discuss the issue of joint traffic infrastructure.