Russia Challenges US Petrodollar by Pegging Ruble to Gold
The Central Bank of Russia has officially announced that, as of March 28, 2022, the Russian Ruble currency is BOUND to Gold at a rate of 5,000 Rubles per gram of gold bullion.
“The Bank of Russia will start buying gold from credit institutions at a fixed price from March 28, 2022 in order to balance supply and demand in the domestic precious metals market. From March 28 to June 30, 2022 inclusive, the price will be 5,000 RUB per 1 gram. The set price level makes it possible to ensure a stable supply of gold and the uninterrupted functioning of the gold mining industry in the current year. After this period, the gold purchase price can be adjusted taking into account the emerging balance between supply and demand on the domestic market.”
Hal Turner has worked out the conversion to show the impact on the US dollar:
There are 32 grams in each TROY ounce. 32 grams times 5,000 rubles per Gram is 160,000 Rubles.
At the time, the conversion rate between rubles and dollars was 100 to 1. That has since dropped to 86.1344 rubles to $1.
This means that the price of gold is now $1857 per ounce when buying with rubles compared to over $1932 per ounce when buying with dollars.
Russia has also required purchases of Russian oil to be made in rubles, which means other countries must exchange their fiat currencies for a gold-bound currency, further reducing the value of the dollar, which has seen dramatic inflation already this year.
Turner also notes that the last guy on this planet who tried to back a currency with Gold, was Muammar Gaddafi of Libya.
Millennium State reports:
In 2009, Colonel Gaddafi, then President of the African Union, suggested to the States of the African continent to switch to a new currency, independent of the American dollar: the gold dinar.
The objective of this new currency was to divert oil revenues towards state-controlled funds rather than American banks. In other words, to stop using the dollar for oil transactions. Countries such as Nigeria, Tunisia, Egypt and Angola were ready to change their currencies.
Here is Russian President Vladimir Putin explaining the shift, stating that countries will begin moving their paper and digital assets into real reserves of raw materials like land, food, and gold:
Sources:
“Gold Dinar: The Real Reason behind Gaddafi’s Murder.” Millenium State Blog, 5 June 2019, https://millenium-state.com/blog/2019/05/03/the-dinar-gold-the-real-reason-for-gaddafis-murder/.
Turner, Hal. “Updated 10:39 AM EDT — It’s Official! Russia Central Bank Announces Ruble Bound to Gold! 5000 Rubles per Gram.” Hal Turner Radio Show, 27 Mar. 2022, https://halturnerradioshow.com/index.php/en/news-page/world/it-s-official-russia-central-bank-announced-ruble-bond-to-gold-5000-rubles-per-gram.
Wall Street Silver. “Putin Predicting Dollar and Euros Demise and Everyone Moving to ‘Real Reserves of Raw Materials’ like ‘Land, Food, and Gold’ Pic.twitter.com/m3mq9ez6hf.” Twitter, Twitter, 27 Mar. 2022, https://twitter.com/WallStreetSilv/status/1508186316638457864.
“Информация о Покупке Банком России Золота На Внутреннем Рынке.” Информация о Покупке Банком России Золота На Внутреннем Рынке | Банк России, http://www.cbr.ru/press/PR/?file=25032022_192430DKP25032022_182539.htm.
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