Ghost of Truth on Nostr: Hong Kong: Russia and China Bypass US Sanctions with Gold As the world witnesses a ...
Hong Kong: Russia and China Bypass US Sanctions with Gold
As the world witnesses a growing divide between economic powerhouses, two major blocs are forming: the US-led economies and the BRICS nations, which are pushing for de-dollarization in response to Washington weaponizing the dollar system in the wake of the Ukraine conflict. One striking example of this split is Russia’s creative workaround to bypass US sanctions—using gold to pay Chinese suppliers.
Russian businesses, unable to make conventional bank transfers due to sanctions, have turned to gold. Their solution? Buying gold in Russia, transporting it to Hong Kong via private couriers, and selling it there to deposit the cash into Chinese supplier accounts. Hong Kong, a major hub for gold trading in Asia, is playing a crucial role in facilitating this workaround.
Hong Kong’s status as a free port means gold can be imported without duty, making the process efficient, though strict customs regulations still apply. Russian couriers transport the gold across the border and hand over documentation to Chinese brokers, who then provide the cash needed to settle payments.
China, with its vast middle class and demand for gold, remains a top buyer of the precious metal. The Chinese Central Bank has even raised gold import quotas for several major banks in anticipation of rising demand, despite gold’s high prices. This shift is reinforcing China’s strategic role in gold trade, especially with Russia, the world’s second-largest gold producer, increasingly relying on the commodity to navigate sanctions.
As Russia’s gold reserves climb to over 2,300 tonnes, and China’s gold imports continue to grow, the economic partnership between these two BRICS giants signals a deeper challenge to the dollar’s dominance in global trade. The Euro lost a big share of international settlement with the beginning of the Ukraine conflict and the EU's sanctions on russian gas.
more: https://lnkd.in/evn8NUYs
#Gold #Economy #DeDollarization #BRICS #USSanctions #China #Russia #HongKong #USA
As the world witnesses a growing divide between economic powerhouses, two major blocs are forming: the US-led economies and the BRICS nations, which are pushing for de-dollarization in response to Washington weaponizing the dollar system in the wake of the Ukraine conflict. One striking example of this split is Russia’s creative workaround to bypass US sanctions—using gold to pay Chinese suppliers.
Russian businesses, unable to make conventional bank transfers due to sanctions, have turned to gold. Their solution? Buying gold in Russia, transporting it to Hong Kong via private couriers, and selling it there to deposit the cash into Chinese supplier accounts. Hong Kong, a major hub for gold trading in Asia, is playing a crucial role in facilitating this workaround.
Hong Kong’s status as a free port means gold can be imported without duty, making the process efficient, though strict customs regulations still apply. Russian couriers transport the gold across the border and hand over documentation to Chinese brokers, who then provide the cash needed to settle payments.
China, with its vast middle class and demand for gold, remains a top buyer of the precious metal. The Chinese Central Bank has even raised gold import quotas for several major banks in anticipation of rising demand, despite gold’s high prices. This shift is reinforcing China’s strategic role in gold trade, especially with Russia, the world’s second-largest gold producer, increasingly relying on the commodity to navigate sanctions.
As Russia’s gold reserves climb to over 2,300 tonnes, and China’s gold imports continue to grow, the economic partnership between these two BRICS giants signals a deeper challenge to the dollar’s dominance in global trade. The Euro lost a big share of international settlement with the beginning of the Ukraine conflict and the EU's sanctions on russian gas.
more: https://lnkd.in/evn8NUYs
#Gold #Economy #DeDollarization #BRICS #USSanctions #China #Russia #HongKong #USA