With a Friend Like China, Who Needs the IMF? (Source thetrumpet.com) Pariah nations facing economic turmoil no longer need to bow to Western demands to access loans and capital markets—they can turn to China. Recent currency-swap deals between China and economically isolated nations like Russia, Argentina and Venezuela demonstrate how China is presenting itself as a redemptive alternative to the West and the Western-controlled International Monetary Fund. China is proving to be a global economic power to be reckoned with. On December 20, Chinese authorities announced their willingness to expand a $24 billion, three-year currency-swap deal that China signed with Russia in October. The deal allows Russia to borrow the Chinese yen as well as lend its faltering ruble. The announcement comes as Russia endures crippling sanctions from Western nations over its annexation of Crimea and involvement in Ukraine. Those sanctions have cut off Russia from most of the world’s capital markets. The recent drop in oil and gas prices have exacerbated Russia’s economic fortunes. Russia’s ruble performed the worst of any currency in the world over the last six months, as Bloomberg reported on December 22. Prior to the December 20 announcement, Russia’s currency had lost 41 percent of its value this year. Chinese Foreign Minister Wang Yi assured over the weekend that Russia possessed “the capability and the wisdom to overcome the existing hardship in the economic situation.” He added, “If the Russian side needs, we will provide necessary assistance within our capacity.” “Many Chinese people still view Russia as the big brother, and the two countries are strategically important to each other.” That is the primary reason China has stepped in to help Russia.