The government of Russia, with consultation and encouragement from bodies of the BRICS and of the Eurasian Economic Union (EAEC), is continuing the work of establishing new, non-speculative, and stable international producer prices for the most important commodities, including gold. As productive companies in Europe are being forced to reduce activity or shut down by the NATO central banks’ wild and hyperinflationary monetary policies, and by sanctions that were intended to shut down Russian production, stable commodity prices and currency exchange rates are essential goals for a new international monetary and credit system.
In July the Central Bank of the Russian Federation published two new commodity standards. The first was an international wheat standard, defined as the price (in rubles as a basis) of a metric ton of wheat delivered to the Russian Black Sea port of Novorossysk for export shipment. The second standard was a metric ton of coal under the same conditions. Russian ministries simultaneously set export tax levels lower per metric ton, and payable in rubles. Since early July the international price of wheat in dollars has been relatively stable between $8 and $9/bushel; with the ruble appreciating by about 6% against the dollar during that time, the wheat price in rubles has been relatively more stable, varying within a range of 5%. But these new international commodity prices in rubles are thus far aspirational, steps toward stable, long-term producer prices for the most important commodities—in which the BRICS nations, and the EAEU nations, are dominant producers.
Now it is reported that, since early July, Russian and EAEU senior officials have been discussing a new international precious metals exchange where the price of gold could be fixed. This would be essential to any new credit and monetary system in which one of the BRICS national currencies—or, in Russian President Putin’s reported idea, a new international trade settlement currency—would have a fixed value relative to gold or a “commodity basket” including gold.
