With a brand new trade agreement signed and in place with Russia to purchase oil using a currency other than the U.S. dollar, China, on May 22, began to escalate their rejection of the global reserve currency by issuing a new bank policy within their country to no longer accept dollars in transactions coming to them from the nation of Afghanistan.
China currently provides massive support to Afghan businesses through their banking system, with the primary currency received from these transactions being the U.S. dollar. However, since Afghanistan is not only tied to the U.S. and to the dollar in their rebuilding programs after more than a decade of destructive conflicts, Afghanistan is still a vital link and the focal point for America's ongoing 'war on terror' policy. Hence China's opposition to dollar acceptance potentially makes them a terrorist threat, or at the very least, a supporter of terrorist activity by proxy through their opposition to the national security policies and determinations of the United States government.
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. - Reuters
President Obama has already made it abundantly clear through recent Executive Orders that anyone, foreign or domestic, that gives the appearance of, or speaks out against, U.S. policies in either Ukraine or the Sudan could be held responsible for aiding or abetting an enemy of the state. These orders allow the government to seize property, or detain and arrest any person they so choose at the government's discretion.
Additionally, this same policy has been in place since 2003 for the ideological war on terror when the Patriot Act was passed, giving near Carte blanche power to the President in the event of any person or nation being deemed an enemy through their opposing the goals and missions of U.S. policy against terror determined peoples, nations, and activities.
Like Russia, China is moving forward in a full scale rejection of the dollar, and is working hard to isolate the reserve currency more and more from use in the global financial system. First through their buying and selling of oil in Yuan or Rubles, and now, in the rejection of accepting dollars in their banking system sent from Afghanistan, the Asian superpower is making it abundantly clear that the U.S. currency is no longer a desired form of money that the soon to be largest global economy will choose to accept.