Dollar Warfare
The Sanctions Paradox and the Uneven Search for Alternatives to the Greenback
The dollar still anchors global finance, but the sanctions era has exposed the risks that come with depending on financial infrastructure controlled or influenced by another jurisdiction.
Get Yogen’s stories in your inbox
Join Medium for free to get updates from this writer.
From the immobilization of Russian central-bank assets to sustained central-bank gold buying, CIPS, mBridge and local-currency settlement, governments are exploring different ways to reduce specific points of financial dependence.
But these alternatives solve different problems. A reserve asset is not a payment network. A payment network is not a globally liquid currency. And a bilateral settlement mechanism can struggle when trade between two countries is badly unbalanced.
The result is not a post-dollar system. It is a more complicated, more fragmented one.
Read the full article:
https://structuralsignals.com/dollar-warfare/
Where do you think the biggest shift is taking place: reserves, payment infrastructure, or international currency use?
