Sanctions and Currency Reserves: A Geopolitical Shock

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The Most Important Thing

risk is largely a matter of opinion

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Sam Mendoza

·5 years ago
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Sanctions have shown that currency reserves accumulated by central banks can be taken away. With China taking note, this may reshape geopolitics, economic management and even the international role of the U.S. dollar. #The Most Important Thing https://www.wsj.com/artic..
If Russian Currency Reserves Aren’t Really Money, the World Is in for a Shock
www.wsj.com

If Russian Currency Reserves Aren’t Really Money, the World Is in for a Shock

Sanctions have shown that currency reserves accumulated by central banks can be taken away. With China taking note, this may reshape geopolitics, economic management and even the international role of

 
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Alex

I was shocked that even Switzerland quickly got onboard - financial/economic nuke is on full display: nytimes.com/2022/02/28/wo.. I do believe that this will hasten China’s urgency to require commodity exporters to deal in renminbi. According to Dalio’s new book, China import/export accounts for something like 30% of world trade, but only 4% of world trade is settled in RMB. As the largest importer of many commodities, and a monopolist exporter of several critical inputs for high tech finished goods (processed rare earths for example) it would seem they have leverage to require that gap to close
Switzerland says it will freeze Russian assets, setting aside a tradition of neutrality.

www.nytimes.com

Switzerland says it will freeze Russian assets, setting aside a tradition of neutrality.

The decision came amid mounting public anger at Russia’s invasion of Ukraine.

 
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Chris Nheu

I was shocked that even Switzerland quic...
Interesting. Dalios new book is New World Order?

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Jerome Cody

Interesting. Dalios new book is New Worl...
Great read, and so far, prescient / true

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