Yet the real question on many people's minds should the world summarily reject the U.S. and the dollar to go another way, is what real alternatives are available for nations to be able to transition into to avoid as much chaos as possible? The answer may lie not in the IMF's convoluted SDR system, but rather in three different forms of currency and money that have already emerged as a real threat to the Petrodollar over the past five years.
That leaves only three possibilities beyond America’s influence: Chinese yuan, Russian roubles, and gold, all independent from the West’s banking system. It is no wonder the new yuan for oil contract in Shanghai, perhaps with a little help from China’s state-owned banks, has got off to a roaring start. We can all understand the desire to lock in oil prices for future delivery, in this case it is in return for yuan issued by the People’s Bank of China. However, in the future Iran will be able to spend the bulk of her yuan on other raw materials, using a range of yuan futures contracts as a bridge to them from her oil.
Essentially, US sanctions are forcing Iran onto a yuan standard for her foreign trade. Furthermore, China is there to pick up the pieces the West abandons because of American sanctions, driving Iran into an increasing dependency on China. The new Silk Road, the Chinese-built 200 kilometers per hour railway between Tehran and the eastern city of Mashad, as well as other Chinese-led rail projects are opening up Iran in a purely Eurasian context, marginalising American power. Iran’s problem with this, if there is one, is international yuan markets are not yet developed enough to make full use of hedging instruments. But Iran’s demand for sophisticated financial tools, as well as from other nations in Asia turning their backs on America, is bound to hasten their development. – Commodity Trade Mantra
While most Westerners would scoff at the Russian Ruble becoming a viable alternative to the dollar, the intention from both Russia and China is not to have a singular reserve currency. In fact the connections China has forged with its powerful neighbor have already proven that the energy sector can function efficiently using rubles and yuan, and when you factor in gold to the equation, it would be no different than the original postwar Bretton Woods agreement, or even the Petrodollar standard we currently live under.
Russia and China probably hold the two largest reserves of gold, and using the 'official' numbers as a basis is the type of ignorance normally propagated by the Western media for political purposes. No what you have to acknowledge is that Russia is the world's largest energy distributor, and China is the world's largest producer and banker, and when you take these two factors and mix in an underwriting of gold, it would make them the most obvious choices to supplant the U.S. in determining the future of the next global financial system.