China Halts US Dollar Transactions With Afghan Banks

Tyler Durden's picture




 

The de-dollarization escalates. As Reuters reports, Chinese banks have halted dollar transactions with most Afghan commercial banks. Whether this is related to the terrorist operations in the Muslim-dominated Uighur region is unclear... also unclear is whether the Chinese banks will accept transactions with Afghan banks in CNY?

 

 

As Reuters reports,

Chinese banks have halted dollar transactions with most Afghan commercial banks, the central bank governor said on Thursday, making it difficult for businesses to pay for imports with one of the Afghanistan's biggest trading partners.

 

"China is a major country that was handling those bank transfers, and now they have told the banks they can't do it," governor Noorullah Delawari told Reuters.

 

The impact on business had been felt immediately, he said.

De-Dollarization or Anti-Terrorist action? The official story is as follows:

The Chinese move was part of the trend in which it was increasingly difficult for Afghanistan's commercial banks to execute international transactions, Delawari said. "Some of our banks cannot do any direct transactions because their correspondent banks in the U.S., Europe, Germany, or Turkey (have halted transactions)," he said.

 

"Now even transferring money to China to import goods has been affected."

 

The Afghan government's failure to pass key measures means that it could in June be blacklisted by Financial Action Task Force (FATF), an international body that sets standards on how countries combat money laundering.

 

Banks have been struggling since FATF threatened Afganistan with the blacklist early this year.

 

"That has been affecting our banks ability to transfer money for anything," Delawari said, describing how students abroad were unable to receive money from there parents as an example.

 

Chinese banks and officials were not immediately available for comment.

Because, apparently, now even the Chinese banks are suddenly very concerned about money laundering compliance. In the meantime, Afghanistan: meet gold.

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Thu, 05/22/2014 - 10:38 | 4784667 Bazinga
Bazinga's picture

DE-DOLLARIZATION pickin'up momentum bitchez! Our fearless leaders are absolutely brilliant...

Thu, 05/22/2014 - 10:44 | 4784694 gh0atrider
gh0atrider's picture

Satoshi we are coming!

Thu, 05/22/2014 - 10:46 | 4784701 strannick
strannick's picture

Repudiation of the digi-dollar. Its on like Wangy Dong

Thu, 05/22/2014 - 11:01 | 4784763 Xibalba
Xibalba's picture

opiumcurrency

Thu, 05/22/2014 - 11:03 | 4784775 BanksterSlayer
BanksterSlayer's picture

Move over #PetroYuan ... Hello #OpiumYuan

Thu, 05/22/2014 - 11:26 | 4784866 Keyser
Keyser's picture

Keep stacking... It's getting closer by the day...

 

Thu, 05/22/2014 - 11:58 | 4784983 Anasteus
Anasteus's picture

Well, yes, keep stacking... and pray the BIS to compensate everything with the paper scam as long as needed until it all crashes down.

Thu, 05/22/2014 - 12:58 | 4785269 Xibalba
Xibalba's picture

If you stack to flip for currency, you're fucked. If you stack because it's money that will outlast 'money', well then you're gonna be alright. 

Thu, 05/22/2014 - 10:47 | 4784708 DoChenRollingBearing
DoChenRollingBearing's picture

To my knowledge, there are not too many UIGHURS in Afghanistan.  Muslims yes, but Uighurs (I think) are more-or-less "Eastern Turks".

Do correct me if I am wrong, I am here to learn too.

***

(I have some Satoshis coming via "mail order')

Thu, 05/22/2014 - 10:56 | 4784751 Payne
Payne's picture

China vs the CIA

Thu, 05/22/2014 - 10:57 | 4784755 Bindar Dundat
Bindar Dundat's picture

WW3 has now started.   

Thu, 05/22/2014 - 11:01 | 4784767 Xibalba
Xibalba's picture

The West is salivating at the prospects.  Ordo ab Chao and all

Thu, 05/22/2014 - 11:27 | 4784871 Keyser
Keyser's picture

Been going on for a while, although if you ask the average citizen all you would get is a blank stare in return... 

 

Thu, 05/22/2014 - 12:17 | 4785093 DanDaley
DanDaley's picture

Shutting down the dollar the Chinese way...drip...drip...drip.

Thu, 05/22/2014 - 16:03 | 4786125 Keyser
Keyser's picture

Death by 1000 cuts... 

 

Thu, 05/22/2014 - 11:42 | 4784926 Luckhasit
Luckhasit's picture

My money is on China. True it's the CIA but they have shown to be astronomical fuck ups and in China, well if you fuck up you die.  So China has the better incentive. 

Thu, 05/22/2014 - 16:05 | 4786133 Keyser
Keyser's picture

The west often forgets that China has been around for thousands of years, long before the west was conceived. They are patient and ruthless. The west is naive at best. 

Thu, 05/22/2014 - 11:09 | 4784807 bcking
bcking's picture

Hell yeah, dawg! Ize be stacken dem bitcoinz niggaz!

Thu, 05/22/2014 - 11:31 | 4784891 Gaius Frakkin' ...
Gaius Frakkin' Baltar's picture

BTC users would do well to cut the fucking speculative hype already and start building businesses (not involving BTC "miners") which accept BTC as payment... Maybe then the price wouldn't fluctuate +/- 100% every year.

Thu, 05/22/2014 - 11:35 | 4784906 gh0atrider
gh0atrider's picture

That won't happen and gh0atrider is still bullish on BTC.  Consider that BTC is still a tiny market, and that it's a currency with the exact opposite properties of government fiat.  Government fiat is negative, debt-based currency.  BTC is positive, non-debt based currency.  So any attempts to price this tiny market in government fiat is going to appear to be all over the place.  Bitcoin itself is very stable and predictable.

Thu, 05/22/2014 - 12:01 | 4785013 Dewey Cheatum Howe
Dewey Cheatum Howe's picture

It ain't going to be bitcoin as the long term winner. Bitcoin is fast becoming obsolete in terms of technology for blockchains and hashing algorithms. The technology has already moved beyond bitcoin's implementation of the blockchain and the rest of the herd is just starting to catch up to it. Bitcoin opened the door but it is off to the races now and that horse is lagging in the tech arms race and over time will lose more and more market share. Block chains and crypto-currencies in general have bright future just bitcoin is limited like mp3.

Thu, 05/22/2014 - 10:44 | 4784696 Jack's Digestib...
Jack's Digestible Ideas's picture

De-dollarization or anti-terrorism?

 

Doesn't the former lend itself to the latter?

Thu, 05/22/2014 - 12:47 | 4785230 Kirk2NCC1701
Kirk2NCC1701's picture

Isn't de-dollarization needed to stop money laundering?  Er, I mean, currency laundering.

And with it, to stop funding terra-rists?  ;-)  ;-)

Thu, 05/22/2014 - 16:24 | 4786208 CrabNuggetOne
CrabNuggetOne's picture

Spot on sir, the most important point. Anyone outside the US using US dollars for trade is aiding and abbetting terrorism on a world-wide scale, paying for their own enslavement, and eventual murder.

Thu, 05/22/2014 - 10:45 | 4784699 kchrisc
kchrisc's picture

They may be your "leaders, " but they are not mine.

Thu, 05/22/2014 - 10:45 | 4784700 y3maxx
y3maxx's picture

...USSA/Pres Halfrobama's Urghu CIA False Flag event backfires....again...and again and again.

Ongoing batting average?.....0% for Americans

Thu, 05/22/2014 - 11:00 | 4784761 813kml
813kml's picture

If at first your false flags don't succeed, try try again.

Thu, 05/22/2014 - 16:07 | 4786140 Keyser
Keyser's picture

Or just declare 500,000 acres of border territory as a national monument, then forbid patrolling of the corridor. 

Thu, 05/22/2014 - 10:56 | 4784748 Renewable Life
Renewable Life's picture

I understand the macro overall consequences of this "de-dollarization" conversation, but I'm still looking for the micro signs that the FED is getting scared or effected by all this??

If someone could explain, what "we" (ZHers) should be looking for as this halt continues in dollar transaction usage? (And War is the obvious answer, but I'm talking economically or in the mechanics of the American economy)

Thu, 05/22/2014 - 11:33 | 4784896 Warhead
Warhead's picture

Motherfucker, war is the answer!

https://www.youtube.com/watch?v=WcEPdTy7_uE

Thu, 05/22/2014 - 12:05 | 4785033 SimplePrinciple
SimplePrinciple's picture

Look for Belgium to increase its suddenly huge appetite for US Treasuries.  When it becomes obvious that absolutely nobody is buying Treasuries except for the Fed and its operatives, plus annuities or others who have no choice, then everybody will look to exit the USD.

That is actually already upon us, but the question becomes, "What to?"  That is why the race is on for practical alternative mechanisms for international trade.  I expect non-paper gold will be an anchor of some sort within this system.

As for the American economy, it becomes much poorer and stay that way until businesses get some reassurance their assets/profits won't be confiscated to help pay down government debts.  

Thu, 05/22/2014 - 12:15 | 4785077 DanDaley
DanDaley's picture

Rickards gave 7 warning signs of the collapse in the last chapter of his new book, The Death of Money

Thu, 05/22/2014 - 11:47 | 4784945 Obama_4_Dictator
Obama_4_Dictator's picture

We Chinese, we play joke, we don't want your federal reserve notes...

Thu, 05/22/2014 - 13:08 | 4785301 kill switch
kill switch's picture

Our fearless leaders are absolutely brilliant...

 

These idiots don't even understand the ramifications that this has for the Fascist States of Amerika!!

Thu, 05/22/2014 - 10:39 | 4784669 PartysOver
PartysOver's picture

Green Back = Green Backside.  Stripe the ole arse.

Thu, 05/22/2014 - 10:49 | 4784670 Obama_4_Dictator
Obama_4_Dictator's picture

So many Ruahhh Roahhhss, so little time....the time for preparation is almost over...I am giddy with butterflys in my stomach

Thu, 05/22/2014 - 10:39 | 4784671 Schmuck Raker
Schmuck Raker's picture

"De-Dollarization or Anti-Terrorist action?"

Same, same.

Thu, 05/22/2014 - 10:39 | 4784673 Hippocratic Oaf
Hippocratic Oaf's picture

Ha fuckin' HA!

Any word from odumbo?

???

Thu, 05/22/2014 - 11:38 | 4784870 Professor Fate
Professor Fate's picture

Yeah!  Today's Odumbo report says he shot a 45 on the back nine.  Had to pay his opponent, Ho En Wan, off in Bitcoin.  US dollar evidently no longer being accepted in skins games with Chinese opponents.

Fate the Magnificent
"Push the Button, Max"

Thu, 05/22/2014 - 10:40 | 4784675 alien-IQ
alien-IQ's picture

i guess this too is bullish for US stocks?

Thu, 05/22/2014 - 10:43 | 4784691 Sudden Debt
Sudden Debt's picture

YES! MORE DOLLARS FOR EVERYBODY ELSE!!

 

Thu, 05/22/2014 - 10:57 | 4784753 Bernoulli
Bernoulli's picture

Belgium will happily pick up those dollars.

Thu, 05/22/2014 - 10:40 | 4784676 the not so migh...
the not so mighty maximiza's picture

follow the us dollar trail to the terrorist

Thu, 05/22/2014 - 10:48 | 4784712 kchrisc
kchrisc's picture

"follow the us dollar trail to the terrorist"

Easy, FedRes to DC.

Thu, 05/22/2014 - 10:40 | 4784677 OC Sure
OC Sure's picture

The greatest impetus for de-dollarization is the Federal Reserve itself.

Thu, 05/22/2014 - 10:43 | 4784688 Sudden Debt
Sudden Debt's picture

HEROIN NOW TRADED IN YUAN!!!

WOW!!

THIS IS THE BIGGEST DEAL IN THE LAST DECADE!!

so will the CIA now also trade in yuan?

Thu, 05/22/2014 - 10:50 | 4784719 Dewey Cheatum Howe
Dewey Cheatum Howe's picture

Everyone can make all the jokes they want but crypto-currency is going to benefit because of just that reason. There is only one piece of the puzzle in crypto-currencies missing that makes it completely unblockable. Convertability is another story though.

Thu, 05/22/2014 - 11:08 | 4784796 Sabibaby
Sabibaby's picture

What if war or earthquakes break telco cables and you can trade your crpyto currencies? Sure they'll be repaired eventually but are you going to sit around and wait for them to be repaired?

Thu, 05/22/2014 - 11:18 | 4784832 Dewey Cheatum Howe
Dewey Cheatum Howe's picture

Who said anything about using telco cables... And who said anything about centralized exchanges...

 

Thu, 05/22/2014 - 12:06 | 4785039 WillyGroper
WillyGroper's picture

Your smoke signals gonna transmit?

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